BMAL530_Week6_HW_Q1_Tab2.pdf - 1 Assignment Print View Award 15.00 points Aztec Company sells its product for $170 per unit Its actual and budgeted

BMAL530_Week6_HW_Q1_Tab2.pdf - 1 Assignment Print View...

This preview shows page 1 - 2 out of 2 pages.

11/30/2019 Assignment Print View ; 1/2 1. Award: 15.00 points Aztec Company sells its product for $170 per unit. Its actual and budgeted sales follow. Units Dollars April (actual) 4,500 $ 765,000 May (actual) 2,800 476,000 June (budgeted) 5,000 850,000 July (budgeted) 4,000 849,000 August (budgeted) 4,100 697,000 All sales are on credit. Recent experience shows that 30% of credit sales is collected in the month of the sale, 40% in the month after the sale, 28% in the second month after the sale, and 2% proves to be uncollectible. The product’s purchase price is $110 per unit. 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 24% of the next month’s unit sales plus a safety stock of 90 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,872,000 and are paid evenly throughout the year in cash. The company’s minimum cash balance at month-end is $100,000. This minimum is maintained, if
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read both pages?

  • Summer '17
  • Dr. Halstead

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes