Reference no: EM132973459

Questions -

Q1. Push It Corporation produces push - button switches used in the manufacturer of electric fans. For the year of 2019, the sales of electric fans have been forecasted at 800,000 units. Each unit of electric fans requires 4 pieces of push button switches. Push It regularly supplies 60% of the push button switches use in production of new electric fans. In addition, a replacement push-button switches have increase per year by 20% of the preceding year's sales. In 2018, push it sold 150,000 pieces of push button switches for P10 per piece in both markets. What is the budgeted sales revenue based on the expected number of pieces of push button switches to be sold in 2019?

Q2. Rollers inc. uses a continuous budget. The month of march is about to end, so the company is now preparing estimates for April. Figures for the period January to March pertaining to factory supplies are as follows:

Production Factory supplies

January 90,000 144,612

February 108,000 170,712

March 96,000 153,312

The budgeted production for April is 94,000 units, how much should be the budgeted factory supplies?

Q3. Assume wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is wyteboards minimum cost of ordering and holding inventory?

Q4. The financial manager of sarap corporation wants to determine the amount of cash outlays to be spent for the next period. He asked the help of the accountant and the latter provided a cash budget for the next year. According to the computations, the company would be incurring cash expenses of P6,612,500 per month. The financial manager has estimated a cost of P40 per transaction in case non-cash asset is converted to cash. The firm's opportunity cost ratio is 12%. What is the optimum cash balance?

Q5. Northern Company's budgeted sales for the coming year are P40.5 million of which 80% are expected to be credit sales at terms of n/30. Northern estimates that a proposes relaxation of credit standards would increase credits sales by 20% and increase the average collection period from 30 days to 40 days. Based on a 360-day year, proposed relaxation of credit standards would result in an expected increased in the average accounts receivable balance of how much?