2) Assume the following (1) selling price per unit = $25, (2) total fixed expenses = $21,894, (3) the contribution margin ratio = 37%, and (4) net operating income = $10,000. Given these four assumptions, unit sales must be:

A) 2172

B) 1276

C) 3448

D) 4310

3)Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $45,000 and $75,000, respectively. The company expects to collect 45% of its credit sales in the month of the sale and the remaining 55% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month?

A) 58,500

B) 54,000

C) 41,250

D) 33,750

6) Assume a merchandising company provides the following information from its master budget for the month of May:

Sales	$	135,000
Cash paid for merchandise purchases	$	89,000
Selling and administrative expenses	$	29,000
Accounts payable, May 1st	$	22,500
Accounts payable, May 31st	$	30,000

If the company maintains no beginning or ending merchandise inventory and makes all of its inventory purchases on account, what is the budgeted net operating income for May?

A) 19000

B) 9500

C) 30,000

D) 39,500