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1. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 35,100, a selling price of

1. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 35,100, a selling price of $24, variable cost per unit of $10, and total fixed costs of $387,000. If Brooklyn's unit sales are 350 units less than anticipated, its breakeven point will:

increase by $10 per unit sold.

not change.

decrease by $10 per unit sold.

increase by $14 per unit sold.

decrease by $14 per unit sold.

2. Wolverine, Inc. began operations on January 1 of the current year with a $11,300 cash balance. 50% of sales are collected in the month of sale; 50% are collected in the month following sale. Similarly, 10% of purchases are paid in the month of purchase, and 90% are paid in the month following purchase. The following data apply to January and February:

January February
Sales $ 28,000 $ 48,000
Purchases 26,500 33,000
Operating expenses 6,300

8,300

If operating expenses are paid in the month incurred and include monthly depreciation charges of $1,800, determine the change in Wolverine's cash balance during February.

$2,550 increase.

Some other amount.

$12,400 increase.

$4,350 increase.

$14,200 increase.

3. Tidewater plans to sell 84,000 units of product no. 794 in May, and each of these units requires 3 units of raw material. Pertinent data follow.

Product No. 794 Raw Material
Actual May 1 inventory 10,900 units 28,900 units
Desired May 31 inventory 16,900 units 19,900 units

On the basis of the information presented, how many units of raw material should Tidewater purchase for use in May production?

261,000.

225,000.

279,000.

Some other amount.

243,000.

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