5:53 Done CVP Exercise - MAY2021-Question Glover Company Pro-Forma Income Statement For the Year Ended December 31, 2020 Server 20.00 17.00 Cost of goods sont Director 55,000 Directa 27.000 Variable manufacturing over and 6.000 Frederiges 2000 Toalcost of 30.000 Gross prote 517.000 Seling $20,000 Find 45.000 Advere Variable 8.000 Fed 12.000 Solingan $10.000 Profit be $14.000 voor la 40% S.CO Nutcome Profit $8.400 (profit Required: (Round all calculations to the nearest unit or dollar) a) What is the cost to produce one unit of product? (2 marks) b) What is contribution margin per unit ot product? (2 marks) c) What is the breakeven sale in unit? (Round up to the nearest unit) (2 marks) d) What is the company's margin of safety in units? (2 marks) e) What dollar level of sales is necessary to attain a target profit before tax) of $25,000? (3 marks) f) What dollar level of sales is necessary to attain an after-tax profit of $15,000? (3 marks) Consider each of the following independent situations g) Compute the increase (decrease) in profit after tax if sales were to increase by 25%, fixed selling and administrative expenses decrease by 5% (4 marks) h) If the company increases fixed selling expenses by $10,000 and variable selling expenses by $2 per unit, unit sales are expected to increase by 10% Calculate the company's after- tax profit if these changes were to occur, assuming the same tax rate of 40%). (4 marks) i) If the sales volume is 25,000 units, what is the selling price needed to achieve an after-tax profit of $15,000? (4 marks) i) If direct material costs increase 10%, direct labor costs increase 15%, variable overhead costs increase 10% and foed overhead increases by $10 000, how many units must be sold to earn an after-tax profit of $30,000? (Round your calculations to the next highest unit) (4 marks)