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Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold...

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Accounting

Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold of $22, marketing expense of $65,000 and a 10% commission on each unit sold. Administrative expense is budgeted at $50,000. What is Pallen's budgeted operating income?

a.$281,000

b.$198,000

c.$83,000

d.$39,000

e.$440,000

Connor Company produces speaker systems for cars. Estimated sales (in units) in January are 40,000; in February 37,000; and in March 34,000. Each unit is priced at $60. Connor wants to have 35% of the following month's sales in ending inventory. That requirement was met on January 1. Each speaker system requires 3 boxes and 15 yards of wire. Boxes cost $4 each and wire is $0.60 per yard. Connor wants to have 20% of the following month's production needs in ending raw materials inventory. On January 1, Connor had 24,000 boxes and 100,000 yards of wire in inventory. How many units does Connor expect to produce in February?

a.30,500

b.35,950

c.25,700

d.25,000

e.23,750

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