Forrester Company is considering buying new equipment that w…

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester’s current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be:

Western Company is preparing a cash budget for June. The com…

Western Company is preparing a cash budget for June. The company has $12,000 in cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:

Consider the following loan scenario for Questions 36 throug…

Consider the following loan scenario for Questions 36 through 39: Loan Amount: $300,000 Interest Rate: 10% Term to Maturity: 25 Years Monthly Debt Service: $2,726 Frequency Debt Paid: Monthly What would be the loan balance for the beginning of month two (end of month one)?