Question
Variable costs vary in total as activity varies. vary on a per unit basis as activity varies. are unpredictable. none of the above. What might
Variable costs
vary in total as activity varies.
vary on a per unit basis as activity varies.
are unpredictable.
none of the above.
What might a very conservative sales budget cause?
a decrease in selling prices
a shortage of inventories
increased sales during the year
overproduction of goods
The production budget shows that expected unit sales are 86700 for May and 86900 for June. The company desires to have units on hand at the end of the month equal to 10% of next months sales. How many units should the company produce during May?
86720
95370
86680
95390
Bramble has budgeted its activity for December according to the following information: 1. Sales at $507000, all for cash. 2. Budgeted depreciation for December is $12700. 3. The cash balance at December 1 was $57400. 4. Selling and administrative expenses are budgeted at $34600 for December and are paid for in cash. 5. The planned merchandise inventory on December 31 and December 1 is $24300. 6. The invoice cost for merchandise purchases represents 50% of the sales price. All purchases are paid in cash. How much are the budgeted cash disbursements for December?
$300800
$288100
$275400
$513350
Present Value of an Annuity of 1 | |||
Periods | 8% | 9% | 10% |
1 | 0.926 | 0.917 | 0.909 |
2 | 1.783 | 1.759 | 1.736 |
3 | 2.577 | 2.531 | 2.487 |
A company has a minimum required rate of return of 9% and is considering investing in a project that costs $49200 and is expected to generate cash inflows of $30900 at the end of each year for two years. The net present value of this project is
$18300.00.
$9150.00.
$54353.10.
$5153.10.
Marigold Company is considering two capital investment proposals. Estimates regarding each project are provided below:
Project Soup | Project Nuts | |
Initial investment | $312550 | $590000 |
Annual net income | 26100 | 45500 |
Net annual cash inflow | 89300 | 141100 |
Estimated useful life | 4 years | 5 years |
Salvage value | 0 | 0 |
The cash payback period for Project Soup is
13.0 years.
4.0 years.
4.2 years.
3.5 years.
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