5. Heathrow Corporation sold 12,500 units of its single product during the year, reporting a cost of good sold that totaled $250,000. A review of the company's accounting records disclosed the following information: Heathrow is subject to a 30% income tax rate.

A. Determine the selling price per unit

B. Management established a goal at the beginning of the year to reduce the company's investment in finished-goods inventory and work-in-process inventory. (1) Analyze cost of goods sold and determine if management's goal was achieved with respect to finished-goods inventory. Show computations IN EXCEL

(2) Analyze the firm's manufacturing costs and determine if management's goal was achieved with respect to work-in-process inventory. Show computations IN EXCEL

C. Is the company profitable? Show calculations IN EXCEL

Cost of goods sold as a percentage of sales 4000 $ 87,000 55,000 241,000 40,000 74,000 122,000 310,000 revenue Finished-goods inventory, 1/1 Work-in-process inventory, 12/31 Cost of goods manufactured Raw materials used Direct labor Manufacturing overhead Selling and administrative expenses