Consider the following production and cost data for two products, I and C: The c
ID: 2501352 • Letter: C
Question
Consider the following production and cost data for two products, I and C: The company can only perform 9,000 machine set-ups each period due to limited skilled labor and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? The WRT corporation makes collection on ales according to the following schedule: The following sales have been are expected: Budgeted cash collections in June should be budgeted to be: Brown Corporation has sales of 2,080 units at $50 per unit. Variable expenses are 25% of the selling price. If total fixed expenses are $68,000, the degree of operating leverage is:Explanation / Answer
37) Degree of Opearting Leverage = sales - VAriable cost /sales -variable cost -fixed cost
sales = 2080 x 50 = $104000
VAriable expense = 25% of selling price
=50*25% = $12.5
Variable expense = 2080x12.5 = $26000
Fixed Expense = $68000
Degree of opearting Leverage = 104000-26000/104000-26000-68000
=78000/10000 = 7.8
The correct option is C
36) Budgeted cash colection in june
40% in the month of sales
june sales = 130000x40% = $52000
57 % in the month following sales
sales for the month of may = 140000x57% = $79800
3% in the second month following sales
sales for the month of april = 210000x3%=$6300
Total Cash collections for the month of june = 52000+79800+6300 =$138100
The Corect option is C