Question 26

The starting point for preparing the master budget is to begin with the ______________ budget.

A. sales

B. operating expense

C. production

D. cash

Question 27

The ________________ is one of the operatingbudgets.

A. production budget

B. cash budget

C. capital expenditures budget

D. budgeted balance sheet

question 28

Le Petit Bebe manufactures fashionable clothing for different market segments. Information about its sales and costs for each segment is below: Baby Toddler Children Total Sales Revenue $100,000 $125,000 $?5,000 $300,000 Variable Costs $?5,0(X) $90,0(X) $25,0(X) $190,(X)O Contribution Margin $25,000 $35,000 $50,000 $110,000 Fixed Costs $4,000 $50,0(X) $40,0(X) $94,0(X) Operating Income $21,000 ($15,000) $10,000 $16,000 The company is considering dropping its product line for toddlers because it currently has an operating loss. If the toddler line is dropped, $25,000 of xed costs can be avoided. If the company does drop the toddler product line, what will be the effect on operating income? 0 decrease of $35,000 0 decrease of $15,000 0 increase of $15,000 0 decrease of $10,000 Canoodle Corp. makes all of its sales on credit to its customers. Information about its cash collections are below: Month of Sale 80% Month after Sale 15% Two months after sale 3% Never collected 2% Canoodle had the following credit sales in the fourth quarter of 2020: October $23,000 November $12,000 December $10,000 What was total cash collected in December? 0 $20,500 0 $9,300 0 $10,490 0 $10,000