SRMHS BA 4.0

Dylan wants to prepare reports that show estimates of income and expenses for the upcoming year. Which report would reflect estimates of the costs for acquiring merchandise?

• administrative expenses budget schedule

• selling expenses budget schedule

• purchases budget schedule

• sales budget schedule

Michelle wants to know her company's anticipated cash outflows for the upcoming year. Which schedule would give Michelle this information?

• Sales Budget

• Budgeted Income

• Cash Receipts Budget

• Cash Payments Budget

Katie wants to know her company's estimated net income for the year. Which would provide that information?

• Balance Sheet

• Budgeted Income Statement

• Cash Receipts Budget Schedule

• Comparative Income Statement

Jack's supervisor wants to know how well the expenses were estimated for the past year. Which document would Jack use to gather this information?

• Comparative Income Statement

• Budgeted Income Statement

• Cash Budget Report

• Performance Report

Green Fees Golf Store has total fixed costs of $12,000. Assuming a 20% contribution margin rate, how many sales dollars are required to achieve planned net income of $15,000?

• 40,000

• 60,000

• 75,000

• 135.000

Garrett's Gourmet Ice Cream has total fixed costs of $9,000.00. Assuming a 15% contribution margin rate, how many sales dollars are required to achieve planned net income of $6,000?

• 40,000

• 60,000

• 100,000

• 120,000

Water Fun Park had total fixed costs of $75,000 and a contribution margin rate of 20%. The unit sales price is $75. How many units must be sold to break even?

• 1,000

• 4,000

• 5,000

• 8,000

Budget Motorsports is considering expanding its product line to include motorcycles. Management projects that the motorcycles would sell for $10,000 each. Variable costs are projected to be $6,000 per unit, with total fixed costs of $200,000 per month. If potential sales for the motorcycles are projected to be 80 units per month, would it be wise to expand the production line?

• Yes, the company will have a net income of $120,000 with the new product.

• Yes, the company will have a net income of $48,000 with the new product.

• No, the company will have a net loss of $120,000 with the new product.

• No, the company will have a net loss of $48,000 with the new product.

Cooper's Gym has total fixed costs of $15,000.00. The unit sales at the break-even point are 3,000. The unit sales price is $15.00. What is the contribution margin per unit?

• $5.00

• $5.75

• $10.00

• $15.00

Michel's Craft Store has total fixed costs of $12,000. Assuming a 25% contribution margin rate, how many sales dollars are required to achieve planned net income of $8,000?

• $40,000

• $80,000

• $100,000

• $120,000