Question 1

Discuss the benefits to an entity in preparing a budget for the coming financial year.

Question 3

For each of the following independent situations, calculate the break-even point in units.

a. Variable cost per unit of $3, annual fixed costs of $42 750 and selling price per unit of

$9.

b. Variable costs per unit of $10, annual fixed costs of $63 200and selling price per unit

of $20.

c. Variable costs per unit of $20, annual fixed costs of $40 650 and selling price of $23.

Question 2

From the following data for Starlight Enterprises, calculate the receipts from accounts

receivable for June, July and August of 2021.

Credit sales 5198 000 $206 000 $216 000 $194 000 $195 000 Credit sales are normally settled according to the following pattern: 70 per cent in the month following sale, and 25 per cent in the second month following the sale. Five per cent of accounts are never settled