Flack Corporation provides the following information for its December budgeting process:

The November 30 inventory was 1,800 units. Budgeted sales for December are 4,000 units. Desired December 31 inventory is 2,840 units.

Budgeted purchases are:

		5,040 units.
		6,840 units.
		4,000 units.
		5,800 units.

Frankies Chocolate Co. reports the following information from its sales budget:

Expected Sales:	July..	$90,000
	August.	104,000
	September	120,000

Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:

		$ 78,000
		$ 108,000
		$ 120,000
		$ 130,500

The Apollo Delivery Service has the following information about its truck fleet miles and operating costs:

Year	Miles	Operating Costs
2011	250,000	$160,000
2012	300,000	$175,000
2013	350,000	$210,000

What is the best estimate of fixed costs for fleet operating expenses in 2014 using the high-low method?

		$100,000
		$ 35,000
		$175,000
		$ 50,000

The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data:

Month	Cost of Electricity (Y)	Direct Labor-Hours (X)
January	$14,000	1,500
April	$15,000	1,700
July	$17,000	2,000
October	$14,500	1,600

What would be the best equation using the high-low method?

		Y = $4,000 + $7X
		Y = $0 + $9X
		Y = $1,000 + $8X
		Y = $5,000 + $6X