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Wayne Corp. sells 10,000 units for a price of $45 per unit. Wayne has unit variable costs of $19 per unit, and total fixed costs

Wayne Corp. sells 10,000 units for a price of $45 per unit. Wayne has unit variable costs of $19 per unit, and total fixed costs of $177,000.

If sales increase 20%, by how much will profits increase for Wayne?

  • 20.00%

  • 31.33%

  • 62.65%

  • 93.98%

Allegan Company produces computer processors. Sales budget for the next four months is as follows: March 10,400 units, April 13,200, May 16,600 and June 21,700. Allegan Companys ending finished goods inventory policy is 20% of the following months sales. March 1 beginning inventory is projected to be 2,080 units.

How many units of processors will be budgeted to be produced in April?

  • 13,880

  • 19,160

  • 12,520

  • 13,200

Mackinac Inc. produces denim backpacks. The production budget for the next four months is: July 5,500 units, August 7,300 units, September 8,100 units, October 8,600 units. Each backpack requires 0.8 square meters of denim.

Mackinac Inc.s denim inventory policy is 20% of next months production needs. On July 1 leather inventory was expected to be 880 square meters.

Denim is expected to cost $13.00 per square meter in June, but go up to $14.00 per square meter in July.

What is the expected cost of denim purchases in July?

  • $64,132

  • $65,632

  • $66,532

  • $66,632

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