Jacinda Ardern makes and sells fencing panels. She is setting her budgets for the coming year. Her budgeted selling price for her fencing panels is $20 and she expects to sell 1,000 panels in June. Her budgeted raw material cost for each fencing panel is $6 and direct labour is $4 per panel. New machinery costing $7,500 is budgeted for purchase in May. The new machinery is expected to last for 5 years and have a resale value of $600 after 5 years. Jacinda depreciates her property, plant and equipment on the straight line basis. Administration overheads for June are budgeted to be $1,000. What is Jacinda's budgeted net profit for June? $8,875 $8,885 $9,000 $9,885
Jacinda Ardern makes and sells fencing panels. She is setting her budgets for the coming year. Her budgeted selling price for her fencing panels is $20 and she expects to sell 1,000 panels in June. Her budgeted raw material cost for each fencing panel is $6 and direct labour is $4 per panel. New machinery costing $7,500 is budgeted for purchase in May. The new machinery is expected to last for 5 years and have a resale value of $600 after 5 years. Jacinda depreciates her property, plant and equipment on the straight line basis. Administration overheads for June are budgeted to be $1,000. What is Jacinda's budgeted net profit for June? $8,875 $8,885 $9,000 $9,885
Chapter7: Budgeting
Section: Chapter Questions
Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...
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Jacinda Ardern makes and sells fencing panels. She is setting her budgets for the coming year. Her budgeted selling price for her fencing panels is $20 and she expects to sell 1,000 panels in June. Her budgeted raw material cost for each fencing panel is $6 and direct labour is $4 per panel. New machinery costing $7,500 is budgeted for purchase in May. The new machinery is expected to last for 5 years and have a resale value of $600 after 5 years. Jacinda depreciates her property, plant and equipment on the straight line basis. Administration overheads for June are budgeted to be $1,000. What is Jacinda's budgeted net profit for June?
$8,875
$8,885
$9,000
$9,885
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