Question

answer with details or by law

Bries Corporation is preparing its cashb balance is $18,000. Budgeted cash recei get for January. The budgeted beginning cash total $188,000. The desired ending cash pts total $183.000 and budgeted cash disbursements cash balance is $30,000. To attain its desired ending cash balance e for January, the company should borrow B) SO C) $30,000 D) $43,000 A) S17,000 8. The February contribution format income at income statement of Mcabier Corporation appears below: Sales $ 211,200 Variable expenses 96,000 Contribution margin 115,200 Fixed expenses 84,100 Net operating income 31,100 The degree of operating leverage is closest to: A) 0.27 B) 6.79 C) 3.70 D) 0.15 1. A segment of a business responsible for both revenues and expenses would be called: A. a cost center. B. an investment center. C. a profit center. D. residual income. 2. Assume that Cranberry was being evaluated solely on the basis of return on investment (ROD. Which of the following investment opportunities would Cranberry want to invest in? A) One that generated a return of 10º. One that generated a return of Yes Yes No Yes No Yes B) D) A. Choice A B. Choice B C. Choice C D. Choice D

Answer 1

Beginning Balance of Cash Add Budgeted Cash Receipts 38 7) 18000 39 183000 Total Cash Available 201000 40 Less Budgeted Cash Disbursements Excess /(Deficit) 41 -188000 42 13000 43 Desired Ending Balance of Cash 44 30000 Less Cash Available 45 -13000 Amount to be Borrowed 46 17000 47 Answer A) $17,000 48 49 50 8) Contribution Margin Net Operating Income Degree of Operating Leverage 51 52 115200 53 31100 54 55 3.70 Degree of Operating Leverage 56 57 Answer C) 3.70 58

60 1) Answer C) a profit Centre 61 A profit centre is that is responsible for controlling both costs and revenue. 62 The manager have the responsibility to control Selling price,Sales volume and 63 all expenses incurred in selling the goods. 64 65 66 2) Answer Choice B) No Yes 67 As Cranberry was solely being evaluated on the return on investment ,therefore 68 we select invest in that investment opportunity from where we get higher return. 69 In this case we will invest in an investment which has generated higher return i.e. 15% 70 71 72