On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December All of Molloy's sales are made on account The following information was used in preparing estimated cash collections August sales (actual) $ 48,000 September sales (actual) $ 58,000 October sales (estimated) $ 28,000 November sales (estimated) $ 78,000 December sales (estimated) $ 68,000 Approximately 70 of all sales are collected in the month of the sale, 25 is collected in the following month, and 5 is collected in the month thereafter Budgeted collections from customers in October total $134,000 $36,500 $34,100 $44,900 Budgeted collections from customers in November total $70,500 $164,000 $64,500 $61,600 Budgeted collections from customers in December total $68,500 $174,000 $67,100 $58,500 Baskin Promotions, Inc sells T shirts decorated for a variety of concert performers The company has developed the following budget for the coming year based on a sales forecast of 73,000 T shirts Sales $ 1,272,390 Cost of Goods Sold 743,140 Gross Profit 529,250 Operating Expenses ($100,000 is fixed) 390,540 Operating Income 138,710 Income Taxes (30 of Operating income) 41,613 Net Income $ 97,097 Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30 at all levels of operating income If the concert season is slow due to poor weather, Baskin estimates that sales could fall to as low as 53,000 T shirts In a flexible budget for sales of 53,000 T shirts, how much would Baskin budget for operating expenses $210,940 $310,940 $390,540 $290,540 What unit cost did Baskin use in budgeting the cost of goods sold for the year $5 88 $10 18 $17 43 Some other amount Assume Baskin actually achieves the 53,000 unit sales level, and that net income actually earned at this level was $53,900 A performance report would indicate that net income was $2,583 over budget $43,197 under budget $23,787 under budget At the budgeted level

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On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on

On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections: August sales (actual) $ 48,000 September sales (actual) $ 58,000 October sales (estimated) $ 28,000 November sales (estimated) $ 78,000 December sales (estimated) $ 68,000 Approximately 70% of all sales are collected in the month of the sale, 25% is collected in the following month, and 5% is collected in the month thereafter.

Budgeted collections from customers in October total:

$134,000.

$36,500.

$34,100.

$44,900.

Budgeted collections from customers in November total:

$70,500.

$164,000.

$64,500.

$61,600.

Budgeted collections from customers in December total:

	$68,500.
	$174,000.
	$67,100.
	$58,500.

Baskin Promotions, Inc. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 73,000 T-shirts:

Sales	$ 1,272,390
Cost of Goods Sold	743,140

Gross Profit	529,250
Operating Expenses ($100,000 is fixed)	390,540

Operating Income	138,710
Income Taxes (30% of Operating income)	41,613

Net Income	$ 97,097

Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income.

If the concert season is slow due to poor weather, Baskin estimates that sales could fall to as low as 53,000 T-shirts.

In a flexible budget for sales of 53,000 T-shirts, how much would Baskin budget for operating expenses?

$210,940.

$310,940.

$390,540.

$290,540.

What unit cost did Baskin use in budgeting the cost of goods sold for the year?

$5.88

$10.18.

$17.43.

Some other amount.

Assume Baskin actually achieves the 53,000 unit sales level, and that net income actually earned at this level was $53,900. A performance report would indicate that net income was: