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1.Danbro Distributors is considering whether to open a new wholesale center. The planning committee prepares a master budget for the first quarter of its intended operation (January through March). Monthly sales are expected to be $500,000, half in cash and half on account. All sales on account are collected by the end of the following month.

On the Danbro forecasted income statement on March 31, what will be the total budgeted quarterly Sales Revenue?

		500,000
		1,000,000
		1,500,000
		250,000

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2.Danbro Distributors is considering whether to open a new wholesale center. The planning committee prepares a master budget for the first quarter of its intended operation (January through March). Monthly sales are expected to be $500,000, half in cash and half on account. All sales on account are collected by the end of the following month.

Danbro's cash collections for each month would be

		500,000 per month
		250,000 in Jan, and 500,000 in Feb and Mar
		250,000 per month
		250,000 in Jan, 500,000 in Feb and 250,000 in Mar --------------------------------- 3.Danbro Distributors is considering whether to open a new wholesale center. The planning committee prepares a master budget for the first quarter of its intended operation (January through March). Monthly sales are expected to be $500,000, half in cash and half on account. All sales on account are collected by the end of the following month. The amount in Danbro's Accounts Receivable on March 31 would be 1,500,000 500,000 250,000 0 -------------------------------- 4.A measure of the extent to which fixed costs are being used in an organization is known as Breakeven Managerial accounting Discretionary income Operating leverage ------------------------------------------ 5.Operating leverage would be lowest in companies that have equal amounts of fixed and variable costs have a high proportion of fixed costs in relation to variable costs have a low proportion of fixed costs in relation to variable costs have no variable costs

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