Credit Sales 300,000 400,000 280,00
0
Total Sales $ 460,000 $ 550,000 $ 400,0
00 Management estimates that 5 % of credit sales are not collectible . Of t he credit sales that are collectible , 75 % are collected in the month of s ale and the remainder in the month following the sale . Cost of purcha ses of inventory each month is 80 % of the next month ' s projected total sales . All purchases of inventory are on 5 . ( TCO 2 ) Budgeting provides all of the following EXCEPT 6 . ( TCO 3 ) the cost components of an air conditioner include $ 35 for t he compressor , $ 15 for the sheetmolded compound frame , and $ 100 per unit for assembly . The factor y machines-andtools cost is $ 80,000 . The company expects to produce 1,500 air cond itioners in the coming year . What cost function best represents these costs ? 7 . ( TCO 3 ) which cost estimation method uses a formal mathematical method to develop cost functions based on past data ? 8 . ( TCO 4 ) Sunk costs 9 . ( TCO 5 ) in the theory of constraints , the only direct costs are 10 . ( TCO 5 ) Producing more non bottleneck output 11 . ( TCO 6 ) which of the following methods of allocating costs use m arket-based data ? 12 . ( TCO 6 ) the benefitsreceived criteria for allocating joint costs indicates marketbased measures are preferred because 13 . ( TCO 7 ) Life-cycle budgeting is particularly important when 14 . ( TCO 7 ) Pritchard Company manufactures a product that has a var iable cost of $ 30 per unit . Fixed costs total $ 2,000,000 , allocated on t he basis of the number of units produced . Selling price is computer b y adding a 12 % markup to full cost . How much should the selling pri ce be per unit for 300,000 units ? 15 . ( TCO 8 ) the costs used in cost-based transfer prices 16 . ( TCO 8 ) Division A sells soybean paste internally to Division B , which in turn , produces soybean burgers that sell for $ 5 per pound . D