DK Company has projected sales and production in units for the second quarter of the year as follows:
Required: A. Cash production costs are budgeted at $6 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses (all paid in cash) amount to $60,000 per month. The accounts payable balance on March 31 totals $96,000, all of which will be paid in April. Prepare a schedule for each month showing budgeted cash disbursements for DK Company.
C.Q 2. KK Corporation produces and sells a product whose selling price is $110.00 per unit and whose variable expense is $29.70 per unit. The company’s monthly fixed expense is $345,290. Required: a). Assume the company’s monthly target profit is $16,060. Determine the unit sales to attain that target profit. Show your work!
b). Assume the company’s monthly target profit is $40,150. Determine the dollar sales to attain that target profit. Show your work!
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