66.

Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 39%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?

Multiple Choice

• The total fixed expenses = $68,000

• The total contribution margin = $122,000

• The total variable expenses = $78,000

• The break-even point is 7,727 units

67.

Assume that the cost formula for one of a companys mixed expenses is $10,000 + $4.00 per unit. The companys planned level of activity was 2,000 units and its actual level of activity was 2,200 units. The actual amount of this expense was $18,110. The spending variance for this expense is:

Multiple Choice

• $690 F.

• $290 U.

• $1,690 U.

• $1,690 F.

68.

Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $39,500 and $43,500, respectively. It also expects credit sales of $59,500 and $69,500, respectively. The company expects to collect 45% of its credit sales in the month of the sale, 50% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the companys cash budget for the second month?

Garrison 17e Rechecks 2020-07-14

Multiple Choice

• $101,550

• $104,525

• $31,275

• $104,250

69.

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 $40,000 and $73,000, respectively. The company expects to collect 30% of its credit sales in the month of the sale, 60% in the following month, and 10% is deemed uncollectible. What amount of cash collections from credit sales would the company include in its cash budget for the second month?

Multiple Choice

• $43,800

• $21,900

• $53,200

• $45,900

70

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

Sales	$	124,000
Cost of goods sold	$	100,000
Selling and administrative expenses	$	34,000
Accounts receivable, May 1st	$	18,000
Accounts receivable, May 31st	$	25,000

If all of the companys sales are on account, what is the amount of cash collections from customers included in the cash budget for May?

Multiple Choice

• $117,000

• $106,000

• $124,000

• $113,000