Question 1 6 pts [Select] is an important in predicting how costs and sales levels affect profitability [Select) 4 is the formal plans of the company expressed monetarily. A Select) is a forma comprehensive plan for a company's future. It contains several individual budgets that are linked together to form a coordinated plan, the first budget prepared is the Select) 9 budget A Select) compares actual performance and budgeted performance based on actual sales volume (or other activity level). A Select) 9 budget is based on a single predicted amount of sales or other activity measure. Question 9 3 pts Rare Air Consulting incurred the following costs during the year: Depreciation of Office Furniture Direct Labor Direct Materials Executive Salaries Liability Insurance Office Rent Sales Commissions Vehicle Lease $5,000 $12,000 $3,000 $50,000 $700 $7,200 $5,000 $7,200 Sales for the year are $100,000. Rare Air determined that only the prime costs and sales commission are to be classified as variable costs; all other cost are classified as fixed. Rare Air sold 500 units. 1. What is contribution margin?$ 2. What is the contribution margin per unit? $ 3. What is the contribution margin ratio? Question 8 5 pts A company sells a product for $1,250 each, variable cost per unit is $750, and total fixed cost are $700,000. Based on the provided information, answer the following: 1. What is the contribution margin in per unit? $ 2. Compute break even in units. units 3. Calculate sales in units and dollars in order to earn pre-tax income of $350,000. 1. Sales in Units: units 2. Sales in dollars: $ 4. Compute break even in units, if variable cost per unit is reduced to $500 and fixed cost increase to $925,000. Round to whole number. 1. New Break even is: units D Question 4 2 pts A company provided the following direct materials cost information. Compute the cost variance. Standard costs assigned: Direct materials standard cost (405,000 units @ $2/unit) $810,000 Actual costs Direct Materials costs incurred (403,750 units @ $2.20/unit) $888,250 $80,750 Favorable. $78,250 Unfavorable. $78,250 Favorable. $80,750 Unfavorable $2.500 Favorable. Question 5 5 pts Chocolate Factory Inc. is preparing a cash budget for April. The company has $43,000 cash at the beginning of April and anticipates $155,000 in cash receipts and $236,250 in cash disbursements during April. Chocolate Factory Inc. has an agreement with its bank to maintain a cash balance of $25,000 What amount, if any, must the company borrow during April to maintain a $25,000 cash balance
