PROBLEM
	Product A	Product B
Estimated sales (units)	5,000	2,000
Selling price per unit	$ 8.00	$ 15.00
Purchase price per unit	$ 2.00	$ 6.00
Freight in per unit	$ 1.00	$ 1.00

The total production overhead is $ 200,000 and 7% is allocated against products A and B. The allocation of this overhead is further divided on the basis of number of units sold.

Administrative overhead amounts to $ 70,000 and 10% of this overhead is allocated against products A and B. The allocation of this overhead is further divided on the basis of revenue.

1. Revenue for product A is .
2. Total revenue is .
3. Cost of sales per unit for product B .
5. Total cost of sales for product B .
7. Total profit margin before overhead allocation is .
8. Total production overhead allocated to products A and B is
10. Administrative overhead allocated to product A is .
12. Profit after allocation of both overhead amounts for product A is .
14. Profit after allocation of both overhead amounts for product B is .

15. A business sells $ 60,000 and $ 80,000 worth of goods in January and February respectively. The controller indicates that 50% of the customers pay their bills on a cash basis, 40% in 30 days and 10% in 60 days. During the month of January and February, the company purchased 30,000 and $50,000 worth of goods from suppliers respectively. The companys policy is to pay 50% on a cash basis and the other 50% during the following 30 days. The monthly administrative expenses are broken down as follows:

    Salaries	$ 12,000
    Depreciation	2,000
    Rent	3,000
    Office supplies	500
    Communication services	500

    The companys opening cash balance for the month of January is $ 1,000.

16. Monthly cash receipts from sales are as follows:

17. January February March