1. When Vanguard Company district managers submitted their preliminary budget proposals, top management discovered that the southern district manager had requested a new project management information system. Unfortunately, the system is incompatible with the system used at headquarters. Which of the following advantages of budgeting reduces the likelihood that the company will end up with two incompatible systems?

A. Planning

B. Coordination

C. Corrective measures

D. Performance measurement

2. Browning Company's sales budget shows the following expected total sales:

Month	Sales
January	$17,000
February	$38,000
March	$43,000
April	$48,000

The company expects 70% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 66% in the month following the sale with the remainder being uncollectible and written off. The total cash inflows from sales in April would be:

A. $25,200.

B. $42,666.

C. $34,200.

D. $34,445.

3. Lewes Company produced 8,000 units of inventory and sold 6,000. The company incurred the following production costs: Variable manufacturing cost: $12.00 per unit Fixed manufacturing overhead cost: $60,000 Assuming the company sells its product at a price of $25 per unit, and incurred $10,000 in selling and administrative cost, what is the amount of net income under variable costing?

A. $8,000

B. $23,000

C. $68,000

D. $107,000