Elk Manufacturing has budgeted the following amounts for its next fiscal year:Total fixed expensesSelling price per unitVariable expenses per unit$440,000$100$20To maintain the original breakeven sales in units if fixed expenses were to increase by 10%, the selling price per unit would have to beO A. increased by 8%Bincreased by 68%C. decreased by 68%D. decreased by 8%

Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Answered: Elk Manufacturing has budgeted the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pablo Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 49,000 89,000 99,000 79,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 20% of the next quarter's production needs for material A. A total of 39,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
Mallory Company expects to sell 130 units in the first quarter, and 70 units in the second quarter. Assuming the company prefers to maintain finished goods inventory equal to 40% of the next quarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projected sales were used to determine last quarter's required ending inventory. Mallory Company Production Budget First Quarter Budgeted Sales in units Add: desired ending finished goods inventory Total finished goods inventory needed Deduct: beginning finished goods inventory Units to be produced 1st Qtr.
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Weller Company's budgeted unit sales for next year are provided below: Budgeted unit sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 15,000 *16,000 14,000. 13,000 The company's variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8,000 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for next year. Note: Round "Per Unit" answers to 2 decimal places
Solve requriement a and b
am. 40.
A company’s static budget estimate of total shipping cost was $100,000 based on theassumption that 10,000 units would be produced and sold. The company estimatesthat 30% of this amount is variable and the remainder is fixed. What would be thetotal shipping cost if 12,000 units were produced and sold?a. $96,000b. $100,000c. $106,000d. $116,000
← The operating budget for a certain company shows a net income of $353,920. To achieve this, the company is targeting sales of $644,000, variable costs of $283.360, and fixed costs of $6,720. Compute the break-even point in sales dollars. The break-even point in sales dollars is $ (Round to the nearest cent as needed Round att intermediate values to six decimal places as needed.)
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 22,000 23,000 20,000 20,000 The company’s variable selling and administrative expense per unit is $2.10. Fixed selling and administrative expenses include advertising expenses of $15,000 per quarter, executive salaries of $41,000 per quarter, and depreciation of $21,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $6,400 will be paid in the second quarter. Required: Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. Note: Round "Per Unit" answers to 2 decimal places.
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The marketing department of Kyle Corporation has submitted the following sales forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales (units) 8,800 10,800 12,800 11,800 The selling price of the company’s product is $28 per unit. Management expects to collect 60% of sales in the quarter in which the sales are made and 35% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $88,500. The company expects to start the first quarter with 2,400 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,650 units. Required: 1-a. Prepare the company's sales budget. 1-b. Prepare the schedule of expected cash collections. 2.…
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