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QUESTION 5 Stone Company plans to sell 200,000 calculators. The fixed costs are $600,000, and the variable costs are 60% of the selling price. If
QUESTION 5
- Stone Company plans to sell 200,000 calculators. The fixed costs are $600,000, and the variable costs are 60% of the selling price. If the company wants to realize a profit of $120,000, the selling price of each calculator must be:
$5.00 | ||
$7.50 | ||
$9.00 | ||
$10.00 |
QUESTION 6
- Brower Company manufacturers and sells one product for $100 per unit. The variable costs per unit are $70, and the monthly total fixed costs are $3,750. Last month Brower sold 100 units and expects sales to remain the same for the current month. If fixed costs increase by $750, what is the break-even point for the current month?
$6,400 | ||
$12.500 | ||
$15,000 | ||
$22,500 |
QUESTION 7
- The overall purpose of an operating budget is to:
Develop a plan to meet a specified goal | ||
Determine disposable income | ||
Both a and b | ||
Neither a or b |
QUESTION 8
- The section of a cash budget that identifies amounts that must be borrowed is called the:
Cash receipts section | ||
Cash disbursements section | ||
Cash excess or deficiency | ||
Financing section |
QUESTION 9
- NewGen Computers is preparing its budget for 2013. Sales for year are budgeted at $1,000,000; 20% are cash sales and 80% are credit sales. The company expects to collect 60% of call credit sales in 2013. Budgeted expenses are $800,000. These expenditures include $25,000 for depreciation and $497,000 for variable manufacturing overhead. Given this information, total cash outflows for 2013 would be:
$278,000 | ||
$303,000 | ||
$775,000 | ||
$800,000 |
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