6. The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as Flexible budgeting. Continuous budgeting. Master budgeting. Zero-based budgeting b. c. 7. A disadvantage of static budgets is that they: Start with a clean slate b. Do not show possible changes in underlying activity levels. c. Cannot be used by service companies d. Show the expected results of a responsibility center for several levels of activity. 8. The budget process involves doing all the following except: Dismissing all managers who fail to achieve operational goals specified in the budget. Establishing specific goals Executing plans to achieve the goals. Periodically comparing actual results with the goals. a. c. d. If fixed costs are $500,000 and the unit contribution margin is $10, what amount of units must be sold in order to realize an operating income of $100,000? a. 41,667. b. 50,000. . 60.000. d. 100,000. Ifa business had sales of $4,000,000 and a margin of safety of 10%, what was the break-even point in dollars? a. $3,200,000. b. $3,600,000. c. $4,000,000. d. $4,400,000. If fixed costs are $150,000, the unit selling price is $100, and the unit on cales in units? 6, Th e process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as Flexible budgeting Continuous budgeting Master budgeting Zero-based budgeting A disadvantage of static budgets is that they Start with a clean slate Do not show pos Cannot be used by service companies Show the expected results of a responsibility center for several levels of activity sible changes in underlying activity levels ept 8 The budget process involves doing all the following exc Dismissing all managers who fail to achieve operational goals specified in the budget Establishing specific goals. Executing plans to achieve the goals. Periodically comparing actual results with the goals. b. d. If fixed costs are $500,000 and the unit contribution margin is S10, what amount of units must be sold in order to realize an operating income of $100,000? 9. a. 41,667. b. 50,000. c. 60,000. d. 100,000. Ifa business had sales of $4,000,000 and a margin of safety of 10%, what was the break-even point in dollars? 10. a. $3,200,000. b. $3,600,000. c. $4,000,000. $4,400,000 If fixed costs are $150,000, the unit selling price is $100, and the unit variable costs are $70, what is the break-even sales in units? a. 2,381 units b. 5,000 units. c. 6,250 units. d. 10,000 units