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Exam II - January February March April Credit Sales...

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January February March April Credit Sales $400,000 $350,000 $300,000 $320,000 Cash Sales $70,000 $90,000 $80,000 $70,000 The regular pattern of collection of credit sales is 40% in the month of sale, 50% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted accounts receivable balance on February 28 would be: $210,000 $350,000 x .40 = $140,000 $350,000 - $140,000 = $210,000 A committed fixed cost: all of the answers are correct: cannot be easily changed; often involves a long-term contract; does not change when output changes A company plans on selling 400 units. The selling price per unit is $5. There are 40 units in beginning inventory, and the company would like to have 75 units in ending inventory. How many units should be produced for the coming period? 435 units A cost object is something for which a company wants to know the cost. True A linear programming model must: have only one objective function. a linear programming problem can have: only one objective function. A manufacturer of premium wire strippers has supplied the following data: Units produced and sold 340,000 Sales revenue $2,448,000 Variable manufacturing expense 1,258,000 Fixed manufacturing expense 716,000 Variable selling and Admin expense 306,000 Fixed selling and Admin expense 124,000 Net Operating income $ 44,000 The company's degree of operating leverage is closest to: 20.09 A mixed cost: contains both a fixed and variable component A strategic plan identifies strategies for future activities and operations, generally covering at least five years. True Arthur Company has a margin of safety percentage of 25%. The break-even point is $300,000 and the variable expenses are 45% of sales. Given this information, the net operating income is: $75,000 ($300,000 x .25) At a sales level of $90,000, Blue Company's contribution margin is $24,000. If the degree of operating leverage is 6 at a $90,000 sales level, net operating income must equal: $4,000 6 = $24,000 / x Belant Company budgeted 200,000 units for June, 210,000 for July and 300,000 for August. Each unit requires 0.25 direct labor hours. How many direct labor hours are budgeted for August? $75,000 Carlton Company sells a single product at a selling price of $40 per unit. Variable expenses are $22 per unit and fixed expenses are $82,800. Carlton's breakeven point is: 4,600 units 22x + 82,800 = 40x Contribution margin is defined as sales less discretionary fixed costs. False. Contribution margin is the amount remaining after: Variable expenses have been deducted from sales revenue Cost of goods manufactured equals: Direct materials cost + direct labor cost + overhead cost Cost of goods manufactured equals: the product cost of goods completed during the current period. Depreciation on manufacturing equipment is a period cost: True Depreciation on operating equipment appears on which of the following budgets? Overhead budgets Discretionary fixed costs: can be changed relatively easy at management discretion.
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