1. Brady Corp. has the following data for 10,000 units: Selling price $50/unit Variable manufacturing costs $20/unit Variable selling and admin. costs $10/unit Fixed manufacturing costs $ 80,000 Conversion costs $15/unit Assume the breakeven point is 9,500 units.

a. How much are fixed selling and admin costs?

b. Now assume an income tax rate of 40%. Do you think the breakeven point for Brady would increase or decrease relative to the breakeven point of 9,500 given above? Why?

c. Assuming an income tax rate of 40%, if Brady wants to earn an after-tax net income of $30,000, how many units must it produce and sell?

d. How much is direct material cost per unit?

e. What is product cost per unit under a variable costing system for Brady Corp.? (Provide a number)

f. When production levels are expected to increase within a relevant range, what effects would be anticipated with respect to each of the following (increase, decrease, or no change)? Fixed costs per unit Variable costs per unit