multiple choice (3)

QUESTION 38 The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured a. are equal to or greater than units sold b. are less than units sold c. exceed units sold d. equal units sold QUESTION 39 Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business September, October, and November are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash of sales on account 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in October from accounts receivable are estimated to be a. $294,500 b.$262,500 C. $210,000 d. $246,400 QUESTION 40 In a cost-volume-profit chart, the a slope of the total cost line is dependent on the fixed cost per unit b. total cost line begins at zero total cost line begins at the total fixed cost value on the vertical axis d. total cost line normally ends at the highest sales value