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Need help with numbers 29, 31, 32 33. Show work please! 28. Budgeted sales are: May June July $600 $1,000 $800 The company expects to
Need help with numbers 29, 31, 32 33. Show work please!
28. Budgeted sales are: May June July $600 $1,000 $800 The company expects to collect 70% of a month's sales in the month of the sale and 30% in the following month. Budgeted cash inflows for June are: A. $180 B. $700 C. $860 D. $880 E. $940 29. You make product Y in-house at a cost of $14/unit, which consists of $10/unit of fixed costs and $4/unit of variable costs. You need 1,000 units of Y per month. An outside supplier has offered to manufacture product Y for you at a wholesale price of $10 per unit. If you outsource the production of Y to the outside supplier in the short term, your profit will: A. decrease by $6,000 B. decrease C. remain the same D. increase by $4,000 E. increase by $6,000 by $4,000 30. According to EZ Cash Company's budgeted income statement for 2017, it is expected to be highly profitable in 2017. However, its cash budget indicates that it will likely run out of cash in the fourth quarter of 2017. Which of the following is not a reasonable way for EZ Cash Company to manage this cash shortage? A. Encourage customers to pay their bills early (e.g., offer them a small discount for early payment) B. Invest in new equipment to reduce direct labor costs and improve profitability C. Pay suppliers later than usual and incur a small penalty for late payment D. Borrow money E. Trick question - a profitable company cannot run out of cash 31. In December, COGS was $35,000, SG&A costs were $3,000, beginning inventory was $5,000, and ending inventory was $6,000. Compute the purchases of new merchandise in December. A. $32,000 B. $34,000 C. $36,000 D. $38,000 E. $39,000 32. In April, you sold 1,000 units at a price of $4 per unit. COGS for April totaled $2,000, and SG&A costs totaled $1,600. In May, you expect to sell 1,100 units at the same price. This is a short-term change, and 1,100 units is in the relevant range. Compute expected profit for May. A. $440 B. $600 C. $800 D. $1,000 E. not enough information 33. Actual sales price is 20% higher than budgeted. Actual sales revenue in dollars is 14% higher than budgeted. Actual sales volume in units is 5% lower than budgeted. Actual input quantity per unit is 2% higher than budgeted. Actual input price is 4% lower than budgeted. Which of the following is true: A. Sales volume variance is favorable and input efficiency variance is favorable B. Sales volume variance is favorable and input efficiency variance is unfavorable C. Sales volume variance is unfavorable and input efficiency variance is favorable D. Sales volume variance is unfavorable and input efficiency variance is unfavorable E. Not enough informationStep by Step Solution
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