Hooper Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. The company records show the following monthly data relating to these two products:

Standard Deluxe

Selling price per unit $150 $165

Variable production costs 120 126

Variable selling expense per unit 16 13

Expected monthly sales in units 600 1,200

Total monthly fixed cost $15,000

1.The break-even in sales dollars for the expected sales mix is closest to:

a. 160,772

b. 95,178

c.175,644

d. 109,091

2.If the expected monthly sales in units were divided equally between the two models (900 Standard and 900 Deluxe), the break-even level of sales would be:

a. lower than with the expected sales mix

b. the same as with the expected sales mix

c. higher than with the expected sales mix

d. cannot be determined with the available data

Next question:

Pardise Company plans the following beginning and ending inventory levels (in units) for July:

July 1 July 30

Raw material 40,000 50,000

Work in process 10,000 10,000

Finished goods 80,000 50,000

*Two units of raw material are needed to produce each unit of finished product.

1.If Pardise Company plans to sell 480,000 units during July, the number of units it would have to manufacture during July would be:

a.510,000.

b.450,000.

c.440,000.

d.480,000.

2.If 500,000 finished units were to be manufactured during July, the units of raw material needed to be purchased would be:

a.1,020,000.

b.1,000,000.

c.1,010,000.

d.990,000.

Next question:

Roberts Enterprises has budgeted sales in units for the next five months as follows:

June: 4,500 units

July:7,100 units

August:5,300 units

September:6,700 units

October:3,700 units

Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on May 31 contained 410 units. The company needs a production budget for the second quarter of the year.

1.The opening inventory in units for September is:

a.670.

b.370.

c.530.

d.6,700.

2.The total number of units to be produced in July is:

a.7,280.

b.6,920.

c.7,630.

d.7,100.

3.The desired ending inventory in units for August is:

a.710.

b.670.

c.370.

d.530.