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    Budgeting: Charlie Company, Bard Corporation, and Eddie Industry

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    PLEASE SHOW YOUR WORK SO I CAN LEARN TO APPLY THE MATH:
    1.Charlie Company for the Month of December:
    Product XXXX Product ZZZZ
    Estimated beginning inventory 30,000 units 18,000
    Desired ending inventory 32,000 units 15,000
    Region 1, anticipated sales 320,000 units 260,000
    Region 2, anticipated sales 190,000 units 130,000
    The unit selling price for product xxx is $5 and for product ZZZ is $14.

    Budgeted sales for the month are:_________________

    Budgeted production for the product XXX during the month is:_______________
    2.The management of Bard Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition:
    Year Income from Operations Net Cash Flow
    1 $100,000 180,000
    2 40,000 120,000
    3 20,000 100,000
    4 10,000 90,000
    5 10,000 90,000
    What is the cash payback period of this investment? ________

    3. The manufacturing cost of the Eddie Industries for 3 months of the year are:
    Month Total Cost Production
    April $63,100 1200 units
    May 80,920 1800
    June 100,300 2400
    What is the variable cost per unit? __________
    What is the total fixed cost? ________________

    4. The Nachez Company reports the following:
    Sales at Breakeven $300,000
    Current Sales 500,000
    Variable Costs 350,000
    Fixed Costs 100,000
    Determine the firm's margin of safety in dollars_______________
    Determine the firm's operating leverage_________________

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    https://brainmass.com/business/cash-budgeting/budgeting-charlie-company-bard-corporation-eddie-industry-260385

    Solution Preview

    PLEASE SHOW YOUR WORK SO I CAN LEARN TO APPLY THE MATH:
    1.Charlie Company for the Month of December:
    Product XXXX Product ZZZZ
    Estimated beginning inventory 30,000 units 18,000
    Desired ending inventory 32,000 units 15,000
    Region 1, anticipated sales 320,000 units 260,000
    Region 2, anticipated sales 190,000 units 130,000
    The unit selling price for product xxx is $5 and for product ZZZ is $14.

    Budgeted sales for the month are:_________________
    Budgeted sales = Region 1 Sales + Region 2 Sales
    For Product XXXX , budgeted sales in units = 320,000+190,000=510,000 units
    Budgeted sales in $ = 510,000X$5 = $2,550,000
    For Product ZZZZ, budgeted sales in units = 260,000+130,000=390,000 units
    Budgeted sales in $ = 390,000 X $14 = $5,460,000
    Total budgeted ...

    Solution Summary

    The solution explains various problems relating to budgeting

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