Using differential cost analysis—special customer order LO Lynda-Lee Company manufactures basketballs. The company's forecasted in- come statement for the year, before any special orders, follows:

P 10-8 Calculating sales mix, break-even point in units, and break-even point in dollars |_o The Nutty Buddy Company sells three types of nuts: almonds, cashews, and * walnuts. Ten thousand cans of nuts were sold in 2002, and the amount of walnuts sold were twice as much as the number of cans of cashews, whereas al- monds sales were one-half the amount of cashew sales. Fixed costs were $20,000 and the unit sales prices and unit variable costs were as follows:
Product Unit Sales Price Unit Variable Cost Almonds $ 8 $4 Cashews 10 5 Walnuts 6 4 Required:
1 .
Compute the number of cans of each kind of nut sold.
2. Compute the sales mix percentages.
3. Compute the weighted-average contribution margin per unit.
4. Compute the overall break-even unit sales.
5. Compute the unit sales of almonds, cashews, and walnuts at the break-even point.
6. Compute the break-even dollar sales of almonds, cashews, and walnuts.
P 10-9 Calculating break-even point, contribution margin ratio, and margin of safety ratio llj Lo Expansion Enterprises Inc. is considering building a manufacturing plant in m ^T 4.5 Ireland. Predicting sales of 100,000 units, Expansion estimates the following expenses:
Total Percent of Total Annual Annual Expenses Expenses That Are Fixed Materials $19,000 10%
Labor 26,000 20%
Overhead 40,000 40%
Marketing and administration 14,000 60%
$99,000 An Irish firm that specializes in marketing will be engaged to sell the manufactured product and will receive a commission of 15% of the sales price.
None of the U.S. home office expense will be allocated to the Irish facility.
Required:
1. If the unit sales price is $2, how many units must be sold to break even?
(Hint: First compute the variable cost per unit.)
2. Calculate the margin of safety ratio.
3. Calculate the contribution margin ratio.
P 10-10 Effect of taxes on break-even and target volume LO Neon Products Inc. desires an after-tax income of $500,000. It has fixed costs " of $2,500,000, a unit sales price of $300, unit variable costs of $ 1 50, and is in the 40% tax bracket.

Required:
1. What amount of pre-tax income is needed to earn an after-tax income of $500,000?
2. What target volume sales revenue must be reached to earn the $500,000 after-tax income?
3. Assuming that this is a single-product firm, how many units must be sold to earn the after-tax income of $500,000?
4. What target volume sales revenue would have been needed to achieve the $500,000 of income had no income tax existed?