Page 301 - P1 Integrated Workbook STUDENT 2018
P. 301
Answers to supplementary objective test questions
CHAPTERS 9 AND 10 – BUDGETING AND FORECASTING
4.1 B
4.2 The answer is $672,000.
Sales revenue and variable costs per unit (original budget):
Service 1 Service 2
$ per service $ per service
Sales revenue 1,000 1,500
Variable cost 400 450
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Contribution 600 1,050
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Revised sales mix:
Service 1 = 40% × $1,600,000 = $640,000 = 640 services
Service 2 = 60% × $1,600,000 = $960,000 = 640 services
Revised contribution from Service 2 = 640 × $1,050 = $672,000
4.3 A
4.4 The answer is $586,500.
Budgeted receipts:
$
Cash received from previous period 24,000
Sales for this budget period 600,000
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624,000
Credit sales not paid until next period
($600,000 × 75% × 1/12) (37,500)
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Total cash received 586,500
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