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V&V Company sells a product for $200 per unit with variable costs per unit of $130 and fixed costs of $420,000.  If the firm wants to earn $35,000 of pretax income, how many units must be sold?

Warhorse Enterprises breaks down its selling and administrative expense budget as follows:                                                             Office Supplies Expense                      $          1,000                                                             Office Wages Expense                                       17,000                                                             Depreciation Expense                                        4,000                                                             Miscellaneous Expense                                      6,000 On the company’s cash budget, the company should budget for selling and administrative expenses:

Local Domination, Incorporated produces two products:                                                      Units Produced/Sold     Selling Price (unit)        Variable Cost (unit)                      Product 1:                   4,900                                 $          21                               $          15                      Product 2:                   10,900                               $          19                              $          14   Fixed costs are $82,000, of which $21,000 can be directly traced to Product 1 and $46,000 can be directly traced to Product 2.  If Local Domination decides to drop Product 2, the company’s profits:

Rainmaker Enterprises the following information for October:               Job                   Beginning of Month Status        End of Month Status                 Total Allocated Costs             Job A                    In Process                                            Completed, Sold                           $153,000             Job B                    In Process                                            Completed, Not Sold                 $241,000             Job C                    Not Started                                        Completed, Sold                           $190,000             Job D                    In Process                                           In Process                                         $78,000   Overhead is applied at a rate of 125% of direct labor costs.  Actual Manufacturing Overhead was $120,000 for the month of October; $145,000 of overhead was applied to the four jobs (the total allocated costs above include the applied overhead).    Any under or overapplied overhead is adjusted directly to Cost of Goods Sold. The Work in Process account for Job D had a balance of $10,000 on October 1.  Direct materials used for Job D in October were $23,000.  What were direct labor costs assigned to Job D in October?

Rainmaker Enterprises the following information for October:               Job                   Beginning of Month Status        End of Month Status                 Total Allocated Costs             Job A                    In Process                                            Completed, Sold                           $153,000             Job B                    In Process                                            Completed, Not Sold                 $241,000             Job C                    Not Started                                        Completed, Sold                           $190,000             Job D                    In Process                                           In Process                                         $78,000   Overhead is applied at a rate of 125% of direct labor costs.  Actual Manufacturing Overhead was $120,000 for the month of October; $145,000 of overhead was applied to the four jobs (the total allocated costs above include the applied overhead).    Any under or overapplied overhead is adjusted directly to Cost of Goods Sold. Rainmaker Enterprises marks up product costs by 50% to determine sales prices of completed jobs.  For the month of October, Rainmaker Enterprises reports Gross Profit of:

Actual sales for Beauty Beavis Corporation in May were $200,000 (5,000 units sold).  If Beauty Beavis projects an increase in units sold of 10% per month and it will raise the price per unit by $2, what is the amount of budgeted sales revenue for the month of June?

 Which is included in the budgeted income statement but would never appear in the cash budget?

Trump Corporation manufactures great, terrific products that are made in the USA.  Two of his mid-level managers, Clinton and Sanders, have proposed different production setups for a new product, to be sold for $500/unit.  Clinton’s consists of fixed costs of $300,000 and a variable cost of $200/unit.  Sanders’ consists of fixed costs of $400,000 and a variable cost of $160/unit.  The indifference point in units sold – at which the two setups would produce the exact same result – is:

Perfect Reb Corporation manufactures four products; information regarding those products is as follows:                                                                                          A                      B                      C                      D                      Sales Price per Unit                               $300                 $250             $350             $500             Variable Cost per Unit                          $170                 $130            $ 210              $330             Machine Hours per Unit                        5                        3                         4                     6             Periodic Demand in Units                    300                  500                  800                 250 Answer the following: (A) If Perfect Reb Corporation has a monthly capacity of 5,431 machine hours per period, how many units of each product should Perfect Reb produce in order to maximize operations efficiency? (B) Suppose Perfect Reb Corporation paid $9,000 for equipment to increase machine hour capacity to 6,500 per period and is subject to a tax rate of 25%.  What is the change in net income when compared to part “A” of this problem? Label your answers.  SHOW YOUR WORK FOR POTENTIAL OF EARNING PARTIAL CREDIT IN THE CASE OF AN INCORRECT ANSWER.  

The margin of safety (in dollars or units) is: