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4. Bountiful Company had the following functional income statement for the month of May, 2011: BOUNTIFUL COMPANY Functional Income Statement For the Month Ending May
4. Bountiful Company had the following functional income statement for the month of May, 2011: BOUNTIFUL COMPANY Functional Income Statement For the Month Ending May 31, 2011 Sales (15,000 units) $300,000 Cost of goods sold: Direct materials $60,000 Direct labor 45,000 Variable manufacturing overhead Fixed factory overhead Gross profit 37,500 50,000 192,500 $107,500 Selling and administrative expenses: Variable $ 7,500 Fixed 20.000 27,500 $ 80.000 Net income a. Calculate Bountiful's break-even sales and in units. b. Prepare in proper format a CM income statement at 20000 units c. Write the Total cost Equation d. What is the number of units necessary to produce a before tax income of $200,000. e. Prepare a CM approach income statement to compute an after tax profit of $200,000 with a tax rate of 25%. f. What is the number of unit that would be consider the margin of safety at current sales of 15000 units
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