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Finish part 1 and part 2 Part 1: Your company, Cobain Inc, produced and sold 20,000 units in the first month of operations. The per
Finish part 1 and part 2
Part 1: Your company, Cobain Inc, produced and sold 20,000 units in the first month of operations. The per unit costs for the first month of operations are below: Required: You expect to produce and sell 22,000 units in the second month. Fixed costs are expected to remain the same in the second month as in the first month. a. What would be the total manufacturing costs in the second month? b. What would be the total period costs in the second month? c. You would like to do a sales promotion in the second month to boost sales in the third month. What would be the minimum price you would charge per unit so that you covered all incremental manufacturing costs and did not make a loss on the sales promotion? d. Assume that you produced 22,000 units and sold 21,800 of them in the second month. If at the end of the month, a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been already produced by the company and that would otherwise spoil, what is the incremental manufacturing cost you will incur on the 200 units? The marketing department of Jessi Corporation has submitted the following sales forecast for the the upcoming fiscal year (all sales are on credit): Jessi Corporation Sales Budget As the owner of Jessi Corporation, you would like to know how much cash is collected each quarter. Based on the prior year's experience, you expect to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. Required: Complete the Cash Collection Budget below: Jessi CorporationStep by Step Solution
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