41. In deciding whether to sell a joint product or to process it further, management should consider:

A)All joint costs and separately identifiable costs

B)Only joint costs that vary with production volume

C)Joint costs of the product under consideration

D)Variable joint and variable separately available costs

E)None of the above

42. Pink Bunny Corporation manufactures a product with the following full unit costs at a volume of 2,000 units:

Direct materials

$100

Direct labor

40

Manufacturing overhead (30% variable)

75

Selling expenses (50% variable)

25

Administrative expenses (10% variable)

40

Total per unit

$280

A company recently approached Pink Bunny's management with an offer to purchase 225 units for $275 each.Pink Bunny currently sells the product to dealers for $400 each.Pink Bunny's capacity is sufficient to produce the extra 225 units.No selling expenses would be incurred on the special order.

If Pink Bunny's management accepts the offer, profits will:

A)Decrease by $60,000

B)Increase by $33,400

C)Increase by $24,412.50

D)Decrease by $24,412.50

43. Bro Company has a sales budget for next month of $200,000.Cost of goods sold is expected to be 25 percent of sales.All goods are paid for in the month following purchase.The beginning inventory of merchandise is $20,000, and an ending inventory of $24,000 is desired.Beginning accounts payable is $206,500.

The cost of goods sold for next month is expected to be:

A)$80,000

B)$50,000

C)$160,000

D)$75,000

44. Kent Company has a sales budget for next month of $1,000,000.Cost of goods sold is expected to be 25 percent of sales.All goods are paid for in the month following purchase.The beginning inventory of merchandise is $50,000, and an ending inventory of $64,000 is desired.Beginning accounts payable is $160,000.

For Kent Company, the ending accounts payable should be:

A)$341,000

B)$414,000

C)$356,000

D)$264,000

45. The Year 1 selling expense budget for Caramel Corporation is as follows:

Budgeted sales

$1,250,000

Selling costs:

Delivery expenses

$25,000

Commission expenses

30,000

Advertising expenses

10,000

Office expenses

6,000

Miscellaneous expenses

15,000

Total

$121,000

Delivery and commission expenses vary proportionally with budgeted sales in dollars.Advertising and office expenses are fixed.Miscellaneous expenses include $5,000 of fixed costs.The rest varies with budgeted sales in dollars.The Year 2 budgeted sales is $5,000,000.

What will be the value for commission expenses in the Year 2 selling expense budget?

A)$102,000

B)$24,000

C)$120,000

D)$122,000