Question

Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget. a. Beginning cash balance on June 1, $94,900. b. Cash receipts from sales, $417,500. c. Budgeted cash disbursements for purchases, $272,500. d. Budgeted cash disbursements for salaries, $95,900. e. Other budgeted cash expenses, $57,900. f. Cash repayment of bank loan, $32,900. g. Budgeted depreciation expense, $34,900. $53,200. $76,200. $18,300. $111,100. $86,100.

Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $15,000 after deducting variable costs of $72,000 and fixed costs of $9,000.Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be: $9,000 of fixed costs and $84,000 of variable costs. $9,000 of fixed costs and $90,000 of variable costs. $9,000 of fixed costs and $72,000 of variable costs. $11,250 of fixed costs and $72,000 of variable costs. $11,250 of fixed costs and $90,000 of variable costs.

Answer 1

Answer to Question 1.

Answer to Question 2.

At Sales Level of 12,000 Units:
Variable Costs = $72,000
Fixed Cost = $9,000
Net Operating Income = Sales - Variable Cost - Fixed Cost
$15,000 = Sales - $72,000 - $9,000
Sales = $96,000

Selling Price per unit = 96,000 / 12,000 = $8
Variable Cost per unit = 72,000 / 12,000 = $6

At Sales Level of 15,000 Units:

Variable Costs = $6 * 15,000 = $90,000
Fixed Cost = $9,000