Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with 30% of that quarter's direct materials production requirements.Graham expects to have 50,000 pounds of direct materials on hand at the beginning of Quarter 1.What would be Graham's budgeted direct materials purchases for the second quarter of the year?
40. Information pertaining to Yekstop Corp.'s sales revenue is presented below:NovemberDecemberJanuaryCash sales$96,000 $125,000 $78,000 Credit sales288,000 450,000 234,000 Total sales$384,000 $575,000 $312,000 Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each monthwith an inventory equal to 75% of the sales projected for the month. Allpurchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices.Total budgeted cash collections in January by Yekstop Corp. are:
41. Capital One produces a single product, which it sells for $8.00 per unit. Variable costs perunit equal $3.20. The company expects short-term fixed costs to be $7,200 for the comingmonth, at the projected sales level of 20,000 units. Management is considering several alternative actions designed to improve operating results. In conjunction with this, they have created a profit-planning (that is, a CVP) model, which can be used to evaluate different scenarios.Suppose that Capital One's management believes that a $1,600 increase in the monthly