Use the Following to Answer Questions

question 62

Multiple Choice

Use the following to answer questions
Hepburn Corporation's sales price is $30 per unit. Unit sales information is presented below:
Management estimates that 2% of credit sales are uncollectible. Of the remaining credit sales, 30 percent are collected in the month of sale and the remainder in the following month. The March 31 ending inventory is 5,500 units, and Hepburn wants to have 10% of the next month's sales in ending finished goods inventory.
-Hepburn's SG&A expenses,paid as incurred,are $100,000 per month plus 5 per cent of sales.What amount should Hepburn budget for SG&A for April?

• A)$230,000
• B)$178,000
• C)$160,000
• D)$102,600

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Definitions:

NADH

Nicotinamide adenine dinucleotide (reduced form) is a coenzyme involved in redox reactions, carrying electrons from one reaction to another in metabolic processes.

Citric Acid Cycle

A process where aerobic organisms produce energy by oxidizing acetate from carbohydrates, fats, and proteins into carbon dioxide through a sequence of chemical reactions.

Protein Molecules

Large biomolecules comprised of amino acids, essential for various biological functions including catalysis, structure, and regulation.

Amino Acids

Organic compounds that combine to form proteins and are used by organisms for growth, repair, and maintenance of body tissues.