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Managerial accounting - excess of cash available, absorption

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1. Last year, Perry Company reported profits of $13,320. Its variable expenses totaled $82,490 or $7.3 per unit. The unit contribution margin was $3.7. The break-even point in unit sales for Perry Company is:

a.49,284
b.11,300
c.7,700
d.15,400

2. Last year, Wardrup Corporation's variable costing net operating income was $67,600. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $640. What was the absorption costing net operating income last year?

a.$67,600
b. $68,240
c. $640
d. $66,960

3. Crose Inc. is working on its cash budget for November. The budgeted beginning cash balance is $22,800. Budgeted cash receipts total $119,600 and budgeted cash disbursements total $116,000. The desired ending cash balance is $41,100.

The excess (deficiency) of cash available over disbursements for November will be:

a.$3,600
b.$142,400
c.$26,400
d.$19,200

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Solution Summary

Your tutorial creates a contribution margin format income statement and other schedules to solve for missing amounts in Excel (see **attached**). Click in cells to see computations and formulas. A reference is given for the cash budget problem.

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Your tutorial creates a contribution margin format income statement and other ...

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