26. Franklin Inc makes all purchases subject to the following payment pattern: 30% of purchases are paid in the month of purchase, 60% are paid in the first month following purchase and 10% are paid in the second month following purchase. If purchases for January, February and March were $200,000, S180,000 and $230,000 respectively, what was the firm's budgeted account payables balance on March 31st? A. $161,000 B. $179,000 C. $197,000 D. $199,000 E. None of the above Use the following information to answer Questions 27-28. Molar Inc. currently sells 40,000 dental tools to its regular customers but it has a capacity to produce 50,000 tools. Its product sells for $30 per tool and the variable costs incurred are as follows on a per tool basis: Direct materials Direct labour Sales commission A customer has proposed a special order to purchase 10,000 tools at a special price of $20 per tool. If Molar accepts the order, the company will not have to pay its sales people their sales commissions. However, the company will incur a shipping cost of $3 per tool 27. If Molar accepts the special order, how would operating income be affected? A. Increase by $50,000 B. Increase by $46,000 C. Increase by $30,000 D. Decrease by $120,000 E. Decrease by $80,000 28. What is the minimum price per tool below which Molar should reject the order? A. $33 B. $31 C. $15 D. $12 E.S9