Directions: Write the letter “T" for a true statement or “F” for a false statement. 24. Being financially responsible means you are able to make payments as agreed and
honor your financial commitments.
25. Financial irresponsibility typically leads to bankruptcy.
27. When creating a buying plan, you should set a spending limit before choosing the item
26. When defining your spending goal, you should recognize your opportunity cost.
to buy
28. Each purchase you make involves two choices--what to buy and when to buy it.
29. The person who borrows money is called a debtor.
30. Bank and store credit cards are a type of revolving credit.
31. Visa and MasterCard are examples of charge cards.
32. No interest is charged on the unused portion of a line of credit.
33. With a rewards program, you can get money back for using your credit card,
34. The minimum payment due and the payment due date must be disclosed on your
monthly credit card statement.
35. Creditors can never raise the interest rate on a credit card account with a fixed rate.
36. Penalty fees are not permitted to be higher than the minimum payment due.
37. Most creditors use the adjusted balance method for computing interest.

Milden company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. as an aid in planning, the company has decided to start using a contribution format income statement. to have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: cost cost formula cost of good sold $35 per unit sold advertising expense $210,000 per quarter sales commissions 6% of sales shipping expense ? administrative salaries $145,000 per quarter insurance expense $9,000 per quarter depreciation expense $76,000 per quarter management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. units sold and the related shipping expense over the last eight quarters follow: quarter units sold shipping expense year 1: first 10,000 $ 119,000 second 16,000 $ 175,000 third 18,000 $ 190,000 fourth 15,000 $ 164,000 year 2: first 11,000 $ 130,000 second 17,000 $ 185,000 third 20,000 $ 210,000 fourth 13,000 $ 147,000 milden company’s president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. required: 1. using the high-low method, estimate a cost formula for shipping expe