The sales manager for Apple Company anticipates that the market price will increase to $40 per unit.  According to the production manager, the variable costs are expected to increase to $24 per unit but fixed costs will remain at $120,000.    Based on these new predictions, what is the company’s new Break-Even Point in units (ignore taxes)?

What is the Contribution Margin in dollars?

The Strawberry Company had the following activities during its most recent month of operations: Factory Overhead is applied at 70% of Direct Labor Cost.   A. Purchased raw materials on account for $121,250. B. Material requisitions for the month show that the following materials were used on jobs and indirectly:   Job 201                         $ 22,500Job 202                            12,000Job 203                             12,000Indirect Materials                3,750 C. Paid Factory Wages in the amount of  $89,750. D.  Labor time tickets for the month provided the following information: Job 201                         $26,000Job 202                           25,500Job 203                           40,000Indirect Labor                 12,750  E. Incurred factory utilities costs of $57,000; paid in cash.  F. Applied overhead to all jobs worked on. during the month (Jobs 201, 202 and 203).  G. Jobs 201 and 202 were completed and transferred to finished goods.  H. Job 201 was sold for $110,000 to a customer on credit. REQUIRED: a)   Job Order costing is used in Industry’s that produce items that are similar or made to order?   {#1}   b)   What is the cost of Job 201 (remember to use a $ sign and a comma) ?    {#2}  

QUESTION #2    COST-VOLUME PROFIT ANALYSIS The Apple Company manufactures a product that sells for $30 per unit.  The total variable costs of the product are $18 per unit and the company’s fixed costs are $120,000. Required: Answer each of the following questions.

Pear Company budgeted the following sales (all on credit) during the current year: October              $200,000November          $350,000December          $600,000 Experience has shown that credit sales are collected as follows: 20% in the month of the sale, 60% in the first month after the sale, and 18% in the second month after the sale.    How much cash should Pear Company expect to collect in DECEMBER from Sales? {#1}

Use the following information to prepare cash budgets for Pineapple Company for June and July 2030.   June 2030 July 2030 Cash Balance June 1st $  50,000 ? Cash Receipts from Sales $450,000 $750,000 Cash Paid for Purchases $400,000 $350,000 Salaries Paid $200,000 $100,000 Rent Paid $8,000 $8,000 Truck purchased (paid in cash) $25,000   Income Taxes paid   $10,000 Cash Disbursements for Interest ? ?   Other Information:  Pineapple Company had an agreement with the bank. Pineapple would be required to keep a minimum bank balance of $50,000. Pineapple could borrow up to $1,000,000, with an annual interest rate of 12% (1% per month). Interest was calculated on the beginning of the month loan balance. Borrowings can only be made in $1,000 increments. Pineapple Company would pay off loan whenever they have the available funds to do so. Loan Balance: June 1st , 2030:      $200,000   Required: Remember: If the amount is a negative amount use ($ ) to indicate.

A sporting goods store purchased $3,500 of ski boots in October. The store had $1,500 of ski boots on hand at the beginning of October, and expects to have $1,000 of ski boots on hand at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?

The most useful budget figures are developed:

If the Age of Accounts Receivable for the industry is 30 days and are we collecting faster or slower than others in the Industry?

If fixed costs were to increase, would the breakeven in units, increase or decrease? {#1}