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FALSE 13439 1000 2 301,400 FALME A TRUP FALSE pet what will happen to fixed fed cost per unit will decrease cost per
FALSE 13439 1000 2 301,400 FALME A " TRUP FALSE pet what will happen to fixed fed cost per unit will decrease cost per unit will remain unch d cost per unit will increase are not included in a flexible b I should generally be respon from economical lot sizes poor scheduling ade of materials es of raw materials c P L Ap May 55.000 44.000 $2.000 8000 $2,000 a result of March credit sales Sales are 60% for cash and 40% on credit. Crede sales are collected in the month flowing sale. The accounts receivable at March 31 One-half of a month's inventory purchases is paid for in the month of purchase, the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory Monthly expenses are as follows: commissions, 12% of sales, rent, 53,800 per month other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly Depreciation is 5981 per month (includes depreciation on new assets). F. Equipment costing $2,000 will be purchased for cash in April. G Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.
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