3. Use the information computed in #1 and 2 to answer the following questions in the Breakeven Analysis worksheet. Show all of your work. Label each item carefully and neatly. a) What would break-even sales volume be, assuming a ratio of two RC1s sold for each RC2 sold? b) What level of sales would provide the profit target specified by the parent company of $210,000 for the year? (Assume that they sell all that they produce.) B C E F G H J Variable cost per unit: 1 Exhibit 1 5.000 RC2 Units Per Unit Breeden Security, Inc. (A) 2008 Monthly Budget 2 10.000 RC1 Units Per Unit 3 Total Total 4. Variable direct costs: 5 Sales Revenue $55,000.00 $ $35,000.00 $ $90,000.00 $32,000.00 $ $21,000.00 $53,000.00 RC1 10,000 RCZ Total Parts 5.50 6.40 3.50 6 Produce & sell per month # units 5,000 Direct labor 4.20 Total direct costs Total direct per unit 7 Projected selling price 23.00 115,000 $315,000 20.00 200. 9.00 10.60 Sales revenue 9 10 Manufacturing Costs 11 Parts 12 Direct labor Variable overhead Supplies ($21,000/15,000 units) Total variable cost per unit 55.000 $ 32,000 87,000 56.000 1.40 1.40 12.00 10.40 35.000 21,000 70.000 13 Overhead 42 000 112.000 160.000 S Total fixed manufacturing costs: $ 255,000 14 Total manufacturing cost 95.000 S 15,000.00 S 17,000.00 15 Occupancy Equipment maintenance 16 Manufacturing cost per unit 19.00 $ 16.00 $ 17 Equipment depreciation S 8,000.00 Selling & administrative expenses 40,000 uity controrproduction engineering Manufacturing S 36.000 00 $ 91,000.00 10 20 Total expenses $ 295.000 Total 21 22 Profit before tax (per month) indicate 'F' (fixed) $ 20,000 Total fixed costs or V' (variable) for each MOH item 23 Fixed manufacturing cost Fixed selling and administrative cost Total 91,000.00 24 Manufacturing overhead (MOH) 40,000.00 21.000 25 Supplies 26 Occupancy (utilities, rent, maintenance) 27 Equipment maintenance 28 Equipment depreciation 29 Quality control and production engineering 30 Manufacturing administration 31 Total manufacturing overhead S 131,000.00 15.000 17.000 RC1 RC2 Total revenue per unit Variable cost per unit Contribution margin per unit 8 000 P 20.00 23.00 15,000 10.40 12.00 S 9.60 S 11.00 36,000 112,000 32 Total Variable MOH (total of Vs) Total Fixed MOH (total of F's) 21,000 input total VC 91,000 and total FC 33 34 20 37