1. The Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following month's sales. What would be the budgeted production for March?
a. 256,000
b. 206,000
c. 214,000
d. 298,000
2. The break-even point is where
a. total sales equal total variable costs.
b. contribution margin equals total fixed costs.
c. total variable costs equal total fixed costs.
d. total sales equal total fixed costs
3. Sutton Company produces flash drives for computers, which it sells for $20 each. The variable cost to make each flash drive is $6. During April, 700 drives were sold. Fixed costs for April were $1,400 for the month. How much is the monthly break-even level of sales in dollars for Sutton Company?
a. $100
b. $2,000
c. $7,000
d. $4,200
4. A company is completing their Cash Budget. The following data has been prepared for cash receipts and payments.
|
January
|
February
|
March
|
|
Cash Receipts
|
$1,061,200
|
$1,182,400
|
$1,091,700
|
|
Cash Payments
|
$984,500
|
$1,210,000
|
$1,075,000
|
The company's cash balance at January 1st is $290,000. This company desires a minimum cash balance of $340,000.
What is the amount of excess cash or deficiency of cash (after considering the minimum cash balance required) for February? (hint: must figure January's ending balance first)
a. $109,100 deficiency
b. $10,900 excess
c. $900 deficiency
d. $109,100 excess