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2. Projected cost information for a new product to be produced by Knapp Manufacturing is as follows (assume S100 initial selling price): (8 pts) Expected

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2. Projected cost information for a new product to be produced by Knapp Manufacturing is as follows (assume S100 initial selling price): (8 pts) Expected variable unit costs $60.00 20.00 Selling & Administrative Annual fixed costs: S1,500,000 750,000 Production Selling & Administrative a. Compute the number of units that must be sold to earn a profit (before tax) of $500,000. b. Compute the number of units that must be sold to earn an after-tax profit of$500,000 assuming a 20% tax rate. c. Use the original information and sales of 100,000 units to compute the new selling price that the company must use to still obtain a profit (before tax) of $500,000 d. Using the original data, assume a supply chain disruption has caused annual sales in units to be revised to 90,000 units. The company has already sold 20,000 units at the original price of $100. It can reduce fixed costs by $100,000, and can lower variable costs by $3, and it wants to continue to make a profit of S500,000. Compute the new selling price needed. Round all intermediate calculations to the nearest cent. Problems show work in order to receive partial credit for correct process. Hint: T-accounts is a good way to solve this. (18 pts) Inventory Balances Materials Work in Process T. Use the following information to perform the calculations below. Be sure to April. 1 2019 $50,000 $38,000 20,000 28,000 18,000 30,000 Finished Goods 16,000 108,000 27,000 dmimistrative salaries Advertising expense S 20,000 Materials purchased 12,000 Sales 0,000 Manufacturing Overhead Direct labor 1. Alex Company's cost of direct materials used in production. 2. Alex Company's total manufacturing cost incurred during the month. 3. Alex Company's total manufacturing costs. 4. Alex Company's cost of goods manufactured. 5. Alex Company's cost of goods sold. 6. Alex Company's income from operations

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