1. Which of the following is least correct about zero balance accounts?
a. They are set up to handle disbursement activity
b. The account has a minimum amount at all times
c. Checks are automatically transferred into the account as checks are presented for payment
d. The transfer is automatic and involves an accounting entry only
2. New Foods is analyzing a proposed project with expected sales of 8,700 units, ±4 percent. The expected variable cost per unit is $26 and the expected fixed costs are $49,000. Cost estimates are considered accurate within a range of ±1 percent. The depreciation expense is $18,300. The sale price is estimated at $52 a unit, ±3 percent. If the company conducts a sensitivity analysis using a variable cost of $28, what will be the total variable cost estimate?
$253,344
$233,856
$248,060
$253,625
$243,600