Answer Happy

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Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory 43,000 83,000 Ending Inventory 53,000 53,000 Raw material* Finished goods * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 495,000 units during next year, the number of units it would have to manufacture during the year would be: Multiple Choice 465,000 units 525,000 units 452,000 units 495.000 units
The management of Furrow Corporation is considering dropping product LOZE. Data from the company's budget for the upcoming year appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $990,000 $395,000 $377,000 $257,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $247,000 of the fixed manufacturing expenses and $208,000 of the fixed selling and administrative expenses are avoidable if product LOVE is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be: Multiple Choice O $140,000 $39,000 $(140,000) $(39,000)