Answer 1 to 10

C)50 D) 80 1. If you are given the target to sell 40 units each week and you have set $50 per unit as your selling price what will be your budgeted sales in each week? 3. You found that you already have 5 units of product from last week. How many do you have to make this week then? A) $1000 B) $4000 A)50 C)$2000 B)40 D)$5000 C)55 D)45 2. To sell 40 units in this week you have to start your production. You want a smooth flow of production that is why you decided to make 10 units of next week's target as well. Therefore, you need to meet 40 units of this week's budgeted sales and have an ending inventory of 10 units for smoother flow in the next week. What many units do you have to make this week i.e. what is your production need? 4. If you require 3 grams of raw material to make each unit of your product how much raw materials do you need to buy for this week's production? 120 gm 135 gm 150 gm 165 gm A)40 B)10 5. Raw materials for the product costs $2 per gram. How much cash do you require do buy the raw materials for this week production? 6. You have rented a small machine for your production. The rent is such that you pay $50 per week and for every hour used you pay $1 per hour. What will be your machine rent for this week? $240 $270 $22.5 $300 $50 $330 $70 $72.5 7. You have hired a worker to make your product. He charges $10 per hour and takes 0.5 hour to make each unit. How many hours will he have to work for this week's production? 8. If you plan to pay everything by cash what is your total cash spending this week? (Hint: Consider all you spending including material, labor, machine) 20 21.5 $72.5 22.5 $270 25 $567.5 $757.5 9. You have hired a worker to make your product. He charges $10 per hour and takes 0.5 hour to make each unit. How much labor cost will you incur for this week's production? 10. If you receive immediate cash from you budgeted sales and and your expenditures are also paid in cash, do you need to borrow extra cash to run your stall in this week? $200 $215 Yes $225 No $250