1 Points possible 6 Total attempts 3 Corn Co incurs a cost of $28 per unit, of which $10 is variable, to make a product that normally sells for $58 A foreign wholesaler offers to buy 5261 units at $24 each Corn will incur shipping costs of $2 per unit Compute the increase or decrease in net income Corn will realize by accepting the special order using differential analysis and complete the below table Should they accept the special order Round all answers to the nearest whole unit and whole dollar Enter negative numbers with a minus sign Enter zeros where appropriate Revenue $ $ Costs $ $ Net Income $ $ Get help VideoVideoRead 2 Points possible 6 Total attempts 3 Jackson Co must decide whether to make or buy some of its components The variable costs of producing 91000 electrical cords for its floor lamps are $21 per unit The fixed costs associated with making the cords is $426000 Instead of making the cords, the company has the opportunity to buy the cords at $25 per unit However, 30 of the fixed costs will remain Prepare a differential analysis showing whether the company should make or buy the electrical cords Round all answers to the nearest whole unit and whole dollar Enter negative numbers with a minus sign Enter zeros where appropriate Variable Cost $ $ Fixed Cost $ $ Total Cost $ $ Get help VideoVideoReadRead 3 Points possible 6 Total attempts 3 Beltway Company is preparing their sales and selling expense budgets for the next quarter (October, November, December) Beltway produces and sells one product The budgeted sales price for this product is $65 per unit The company expects to sell 14,000 units in October They are budgeting a 2 increase in unit sales each month after October Prepare the sales budget for the quarter (in units and dollars) Round all answers to the nearest whole unit and whole dollar October $ $ November $ $ December $ $ Total $ Get help Video 4 Points possible 2 Total attempts 3 The January1st inventory of finished units for Ryan and Son's Company is 3,000 During January the company plans to sell 43,000 units and desires a January 31st inventory of 7,000 units How many units should the company plan on producing in January units Get help Video 5 Points possible 6 Total attempts 3 Halifax, Inc is trying to prepare their budget for the third quarter As part of the budget they need to determine the total cash that will be collected from sales for each month Halifax reports the following budgeted sales information necessary to calculate budgeted cash collections Sales $637,610 $647,050 $675,430 $639,750 40 of the monthly sales listed above are cash sales and are therefore collected right away and 60 of the sales are on account The amount sold on account each month is collected the following month Calculate the amount of cash collected in July, August, and September Round all answers to the nearest whole dollar Cash Sales Cash collected from sales on account Total Cash Collected Get help Video 6 Points possible 2 Total attempts 3 Given the following information, how much direct labor should be budgeted for February Selected data for the month of February Planned production 34,000 units Direct labor hours per unit 1 5 hours Direct labor rate $11 per hour $ should be budgeted for direct labor Get help Video 7 Points possible 21 Total attempts 3 Kaiser, Inc has the following budgeted cash collections from the cash receipts budget and cash payments (excluding loan principal repayments and interest payments) from the cash disbursements budget for the next quarter (April, May, June) April $31,829 $28,873 May $36,964 $43,916 June $36,538 $33,260 In addition, Kaiser's beginning cash balance as of April 1 is $15,200 Kaiser, Inc would like to maintain a minimum $15,000 cash balance at all times In order to achieve this goal Kaiser has negotiated a line of credit with the bank If the preliminary cash balance falls below $15,000 Kaiser will borrow the necessary funds to keep their balance above the desired amount If the preliminary cash balance is above the $15,000 minimum balance they will use any excess to pay down any outstanding loan balance at the time The interest rate on any outstanding line of credit balance is 6 per year The interest is paid at the end of each month and is computed on the beginning loan balance for the month They have a zero balance on their line of credit on April 1st Prepare the cash budget for the quarter Enter cash disbursements and loan repayments as a negative number Round all calculations to the nearest whole dollar Beginning Cash Balance $ $ $ Cash collected $ $ $ Cash Disbursements Cash payments (given) $ $ $ Interest on bank loan (6 ) $ $ $ Preliminary cash balance $ $ $ Additional loan or (repayment) $ $ $ Ending cash balance $ $ $ Loan balance at beg of month $ $ $ Additional money borrowed $ $ $ principal amount repaid $ $ $ Loan balance at end of month $ $ $ Get help Video 8 Points possible 11 Total attempts 3 Applewood Company is a service based company They are putting together their budgeted income statement for next year They project their next year's budget based on prior year's results Their prior year's income statement follows Sales 885,909 Expenses Sales commission expense 97,450 Rent expense 22,800 Advertising expense 89,045 Salaries expense 200,000 Payroll tax expense 22,755 Depreciation 25,000 Total Expenses 457,050 Income before taxes 428,859 Income tax expense 128,658 Net Income (Loss) 300,201 Applewood's management also predicts the following information to assist in preparing the budget for the next year Sales will increase by 8 Sales Commissions are 11 of sales Rent expense for next year is $1,900 per month for January August and will increase to $2,100 on September 1st Advertising expense is 12 of sales Salaries are expected to increase by 3 Payroll tax expense is expected to remain 7 65 of commissions and salaries combined Depreciation expense is expected to remain unchanged The income tax rate is 30 Prepare a budgeted income statement for the next year Round all calculations to the nearest whole dollar Sales Expenses Sales commission expense Rent expense Advertising expense Salaries expense Payroll tax expense Depreciation Total Expenses Income before taxes Income tax expense Net Income (Loss)

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#1 Points possible: 6. Total attempts: 3 Corn Co incurs a cost of $28 per unit, of which $10 is variable, to make a product

#1 Points possible: 6. Total attempts: 3

Corn Co incurs a cost of $28 per unit, of which $10 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5261 units at $24 each. Corn will incur shipping costs of $2 per unit. Compute the increase or decrease in net income Corn will realize by accepting the special order using differential analysis and complete the below table. Should they accept the special order?Round all answers to the nearest whole unit and whole dollar. Enter negative numbers with a minus sign. Enter zeros where appropriate.

Revenue	$	$
Costs	$	$
Net Income	$	$

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#2 Points possible: 6. Total attempts: 3

Jackson Co must decide whether to make or buy some of its components. The variable costs of producing 91000 electrical cords for its floor lamps are $21 per unit. The fixed costs associated with making the cords is $426000. Instead of making the cords, the company has the opportunity to buy the cords at $25 per unit. However, 30% of the fixed costs will remain. Prepare a differential analysis showing whether the company should make or buy the electrical cords. Round all answers to the nearest whole unit and whole dollar. Enter negative numbers with a minus sign. Enter zeros where appropriate.

Variable Cost	$	$
Fixed Cost	$	$
Total Cost	$	$

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#3 Points possible: 6. Total attempts: 3

Beltway Company is preparing their sales and selling expense budgets for the next quarter (October, November, December). Beltway produces and sells one product. The budgeted sales price for this product is $65 per unit. The company expects to sell 14,000 units in October. They are budgeting a 2% increase in unit sales each month after October.

Prepare the sales budget for the quarter (in units and dollars). Round all answers to the nearest whole unit and whole dollar.

October	$	$
November	$	$
December	$	$
Total	$

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#4 Points possible: 2. Total attempts: 3

The January1st inventory of finished units for Ryan and Son's Company is 3,000. During January the company plans to sell 43,000 units and desires a January 31st inventory of 7,000 units.

How many units should the company plan on producing in January?

units

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#5 Points possible: 6. Total attempts: 3

Halifax, Inc. is trying to prepare their budget for the third quarter. As part of the budget they need to determine the total cash that will be collected from sales for each month. Halifax reports the following budgeted sales information necessary to calculate budgeted cash collections:

Sales

$637,610

$647,050

$675,430

$639,750

40% of the monthly sales listed above are cash sales and are therefore collected right away and 60% of the sales are on account.The amount sold on account each month is collected the following month.

Calculate the amount of cash collected in July, August, and September. Round all answers to the nearest whole dollar.

Cash Sales
Cash collected from sales on account
Total Cash Collected

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#6 Points possible: 2. Total attempts: 3

Given the following information, how much direct labor should be budgeted for February?

Selected data for the month of February:
Planned production	34,000	units
Direct labor hours per unit	1.5	hours
Direct labor rate	$11	per hour

$ should be budgeted for direct labor.

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#7 Points possible: 21. Total attempts: 3

Kaiser, Inc. has the following budgeted cash collections from the cash receipts budget and cash payments (excluding loan principal repayments and interest payments) from the cash disbursements budget for the next quarter (April, May, & June).

April	$31,829	$28,873
May	$36,964	$43,916
June	$36,538	$33,260

In addition, Kaiser's beginning cash balance as of April 1 is $15,200.

Kaiser, Inc. would like to maintain a minimum $15,000 cash balance at all times. In order to achieve this goal Kaiser has negotiated a line of credit with the bank. If the preliminary cash balance falls below $15,000 Kaiser will borrow the necessary funds to keep their balance above the desired amount. If the preliminary cash balance is above the $15,000 minimum balance they will use any excess to pay down any outstanding loan balance at the time. The interest rate on any outstanding line of credit balance is 6% per year. The interest is paid at the end of each month and is computed on the beginning loan balance for the month. They have a zero balance on their line of credit on April 1st.

Prepare the cash budget for the quarter. Enter cash disbursements and loan repayments as a negative number.Round all calculations to the nearest whole dollar.

Beginning Cash Balance	$	$	$
Cash collected	$	$	$
Cash Disbursements
Cash payments (given)	$	$	$
Interest on bank loan (6%)	$	$	$
Preliminary cash balance	$	$	$
Additional loan/ or (repayment)	$	$	$
Ending cash balance	$	$	$

Loan balance at beg. of month	$	$	$
Additional money borrowed	$	$	$
principal amount repaid	$	$	$
Loan balance at end of month	$	$	$

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#8 Points possible: 11. Total attempts: 3

Applewood Company is a service based company. They are putting together their budgeted income statement for next year. They project their next year's budget based on prior year's results. Their prior year's income statement follows:

Sales	885,909

Expenses:
Sales commission expense	97,450
Rent expense	22,800
Advertising expense	89,045
Salaries expense	200,000
Payroll tax expense	22,755
Depreciation	25,000
Total Expenses	457,050
Income before taxes	428,859
Income tax expense	128,658
Net Income/(Loss)	300,201

Applewood's management also predicts the following information to assist in preparing the budget for the next year.

Sales will increase by 8%.
Sales Commissions are 11% of sales.
Rent expense for next year is $1,900 per month for January - August and will increase to $2,100 on September 1st.
Advertising expense is 12% of sales.
Salaries are expected to increase by 3%.
Payroll tax expense is expected to remain 7.65% of commissions and salaries combined.
Depreciation expense is expected to remain unchanged.
The income tax rate is 30%.

Prepare a budgeted income statement for the next year. Round all calculations to the nearest whole dollar.

Sales

Expenses:

Sales commission expense

Rent expense

Advertising expense

Salaries expense

Payroll tax expense

Depreciation

Total Expenses

Income before taxes

Income tax expense