Marked out of 10.00 Flag question The Raymar Company is preparing its cash budget for the months of April and May. The firm has established a $200,000 line of credit with its bank at a 12% annual rate of interest on which borrowings for cash deficits must be made in $10,000 increments. There is no outstanding balance on the line of credit loan on April 1. Principal repayments are to be made in any month in which there is a surplus of cash. Interest is to be paid monthly. If there are no outstanding balances on the loans, Raymar will invest any cash in excess of its desired end-of-month cash balance in U.S. Treasury bills. Raymar intends to maintain a minimum balance of $100,000 at the end of each month by either borrowing for deficits below the minimum balance or investing any excess cash. Expected monthly collection and disbursement patterns are shown below. Collections: 50% of the current month's sales budget and 50% of the previous month's sales budget. Accounts Payable Disbursements: 75% of the current month's accounts payable budget and 25% of the previous month's accounts payable budget. All other disbursements occur in the month in which they are budgeted. Budget Information March April May Sales $40,000 $50,000 $100,000 Accounts payable 30,000 40,000 40,000 Payroll 60,000 70,000 50,000 Other disbursements 25,000 30,000 10,000 In April, Raymar's budget will result in a need to borrow money. How much the company should be borrow? BLEIB Paragraph MacBook Air 59 38 F& F5 - 000 F4 * A & 7 V 8 19 20 % 5 6 O P $ 4 o E Y SU Question 4 Not yet answered Marked out of 12.00 p Flag question The following Contribution Margin format income statements are available for Mera Company and Yara Company. MERA Company YARA Company Sales revenue $700,000 $700,000 Variable costs 350,000 140,000 Contribution margin 350,000 560,000 Fixed costs 150,000 360,000 Net income $200,000 $200.000 If selling price per unit in each company is $20 Instructions: (a) Compute the degree of operating leverage for each company. (b) Compute the breakeven point in units and in dollar value (5) for each company (c) Assume that sales revenue increases by 20%, how much would be the change in the net income for each company Paragraph BIE MacBook Air 11 FB F2 F6 FS . 800 F4 * F3 A & 7 V 8 19 20 % 5 6 $ 4 P 0 0 E Question 4 Not yet answered Marked out of 12.00 p Flag question The following Contribution Margin format income statements are available for Mera Company and Yara Company. MERA Company YARA Company Sales revenue $700,000 $700,000 Variable costs 350,000 140,000 Contribution margin 350,000 560,000 Fixed costs 150,000 360,000 Net income $200,000 $200.000 If selling price per unit in each company is $20 Instructions: (a) Compute the degree of operating leverage for each company. (b) Compute the breakeven point in units and in dollar value (5) for each company (c) Assume that sales revenue increases by 20%, how much would be the change in the net income for each company Paragraph BIE MacBook Air 11 FB F2 F6 FS . 800 F4 * F3 A & 7 V 8 19 20 % 5 6 $ 4 P 0 0 E Glunn Company makes three products a single facility. These products have the following unit product costs: B 9.30 14.90 A Direct Materials 12.80 Direct Labor 14.10 Variable manufacturing overhead 1.2 Fixed manufacturing overhead 18.50 Unit product cost 46.60 0.90 17.20 42.30 4.70$ 10.00$ 0.50$ 23.705 38.90$ Additional data concerning these products are listed below. B 3.40 3.90 3.70 59.20 Mixing minutes per units Selling price per unit Variable selling cost per unit Monthly demand in units 60.10 2.70 2.90 55.30$ 3.70$ 2000 2000 4000 The mixing machines are potentially the constraint in the production facility. A total of 24,200 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: How much of each product should be produced to maximize net operating income? (Round off to the nearest MacBook Air DOO F5 OD 14 30 0 & * 7 V 8 9 6 % 5 $ 4 o o Holtrop Corporation has received a request for a special order of 9,000 units of product Z74 for $46.50 each. The normal selling price of this product is $51,60 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product Z74 is computed as follows: Direct materials 17.30$ Direct labor 6.60 Variable manufacturing overhead 3.80 Fixed manufacturing overhead 6.70 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product 274 that would increase the variable costs by $6.20 per unit and that would require a one-time investment of $46,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the effect on the company's total net operating income of accepting the special order. Show your work! Paragraph BLEE MacBook Air 11 . 17 76 FS DOO Sab 74 * A & 7 V 8 9 90 % 5 6 $ 4 o o Y