CRD Company prepares monthly operating and financial budgets. Estimates of sales in units are made for each month. Production is scheduled at a level high enough to take care of current needs and to carry into each month 30% of the next montha€™s unit sales. Direct materials, direct labor, and variable manufacturing overhead are estimated at $10, $8, and $3 per unit, respectively. Total fixed manufacturing overhead is budgeted at $520,000 per month. The inventory at January 1 consists of 20,000 units. Sales for April, May, June, and July are estimated at 80,000, 100,000, 95,000, and 110,000 units with a rate of $60 per unit.

Variable selling and administrative expenses are $20 per unit. Fixed selling and administrative expenses are $800,000 per month.

Required:
a. Prepare a sales budget for the second quarter by month.
b. Prepare a schedule showing the budgeted production in units for April, May, and June.
c. Prepare a schedule showing the budgeted cost of goods sold for the same three months.
d. Prepare a budgeted income statement for the second quarter by month.

Panera bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. the company began in 1981 with stores primarily located along the east coast of the united states. since then, the firm has expanded to over 1,300 locations throughout the united states and canada. the firm has strong earnings and has been designated by business week as a "significant growth company." panera bread executives are considering the idea of expanding globally by opening cafes in asia through a franchising strategy. which of the following, if true, supports the argument that panera bread should expand into asia through franchising? a: the panera bread menu changes rapidly, and each cafe's artisan bread bakers receive regular training on new recipes. b: panera bread executives want fast access to the asian market without a significant investment of capital. c: panera bread executives want to test the asian market with a short-term commitment that allows them to make quick profits. d: the panera bread mission is to make excellent bread available to customers around the world.

Sarah salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. the problem is that these printers cost ten times more than a regular printer, so it is difficult to get prospective buyers to understand the cost savings of buying it. to break through the barrier and begin making sales, sarah should use a analysis that highlights her printer's lower cost.

Required: 1-a. the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. calculate the increase or decrease in net operating income. 1-b. should the advertising budget be increased ? yes no hintsreferencesebook & resources hint #1 check my work 8.value: 1.00 pointsrequired information 2-a. refer to the original data. management is considering using higher-quality components that would increase the variable expense by $2 per unit. the marketing manager believes that the higher-quality product would increase sales by 10% per month. calculate the change in total contribution margin. 2-b. should the higher-quality components be used? yes no