The following information is drawn from Royal Industries' cash budget: Cash Receipts $ 40,000 Beginning Cash Balance $ 10,000 Ca
sh Payments $ 48,000 Desired Ending Cash Cushion $ 5,000 If there is a cash shortage, the company borrows money. If a surplus occurs funds are used to repay loans or to invest in short-term assets. The company had no debt before January 1st. The amounted "needed" to borrow or the amount "available" for repayment of debt in January would be Multiple Choice $2,000 available. $3,000 needed. $7,000 available. $13,000 needed.
1 answer:
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Answer:
e. $ 350,000
Explanation:
Given: Total number of units= 10000.
Selling price= $60 per unit.
The material cost= $10 per fan
Labor cost= $15 per unit.
Promotion and marketing cost= $100000.
Facility expense= $80000.
Other overhead cost= $20,000.
Now, finding the variable cost of fan.
Variable cost=
Variable cost=
⇒ Variable cost=
∴ Variable cost= $250000.
Selling price=
∴ Selling price of fan is $600000.
Unit contribution=
Next find the unit contribution of each fan.
⇒ Unit contribution=
∴ Unit contribution of each fan is $350000.