In recent vears. Dublic universites have experienced maior budget cuts due to reduced fundine trom their state governments. These budget cuts usually occur at the most inopportune time-during the school year when contractual commitments with faculty and staff had been signed, programs had been planned, and students were enrolled and taking classes.

Should the administration be "fair" to all affected and institute across-the-board cuts whenever the state

announces a reduction in funding?

IT not across-the-Doard cutbacks in programs, then would vou recommend more tocused reductons, and

it so. what priorities would vou establish for bringing spending in line with revenues?

[4 Marks]

Question 6: KG Compan's variable selling and administrative expenses are 15% of net sales. Fixed expenses are $50.000 per quarter. The sales budget shows expected sales of $200.000 and $240.000 in the first and second quarters, respectively. What are the total budgeted selling and administrative expenses for each quarter? | 2

Question 7: On 31 December 2022, Ithaca Manufacturing had 3,000 units in its Finished Goods inventory. The balance sheet on December 31 indicated that these items had a total dollar value of $87,345. During the first quarter of 2023. the company expects to sell 35.000 units at a price of $60/unit. During the same period. the estimated production Is 38.000 units at a cost of s2//unit. what is the expected gross pront for the quarter it the company follows a FIFO method? [4 Marks]