Ironwood sells a single product for $10. The purchase cost is $4 per unit and Ironwood...

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Ironwood sells a single product for $10. The purchase cost is $4 per unit and Ironwood pays a 20% sales commission. Fixed costs are $45,000 per month including $12,000 depreciation, and the company maintains inventory equal to budgeted sales needs for the following month. The following budgeted data are available: Inventory on hand February 1 Budgeted sales - February - March 28,000 units 24,000 units 26,000 units 25,000 units - April a. Compute total budgeted income for February b. Compute total budgeted income for March. c. Find budgeted inventory at March 31 in units d. Find budgeted inventory at March 31 in dollars. e. Find budgeted purchases for March in units f. Find budgeted purchases for March in dollars. Ironwood sells a single product for $10. The purchase cost is $4 per unit and Ironwood pays a 20% sales commission. Fixed costs are $45,000 per month including $12,000 depreciation, and the company maintains inventory equal to budgeted sales needs for the following month. The following budgeted data are available: Inventory on hand February 1 Budgeted sales - February - March 28,000 units 24,000 units 26,000 units 25,000 units - April a. Compute total budgeted income for February b. Compute total budgeted income for March. c. Find budgeted inventory at March 31 in units d. Find budgeted inventory at March 31 in dollars. e. Find budgeted purchases for March in units f. Find budgeted purchases for March in dollars.

Answer rating: 100% (QA)

Requirement a and b Budgeted Sales LessCost of goods sold Gross Prof... View the full answer