6-2 HJ PUBLISHING production cost info is as follows: Raw materials paper (variable) Raw material ink (variable) 1 reams @ $10 each 2 cartridges $20 each 2 hours @ $10 each . Direct labor (variable) Manufacturing overhead (fixed) $100,000 Administrative expenses (fixed) $40,000 Unit selling price 3 times unit variable cost Determine required production levels: Quantity required to loose $100,000 Quantity required to break even Quantity required to earn $1,000,000 Net income if only one book is sold Complete table below: 1. 2. 3. 4. 5. | INCOME/EXPENSES SALE OF TARGET | BREAK- I BREAK EVEN | TARGET INCOME OF $1,000,000 ONE LOSS OF EVEN AFTER HIRING BoOK $100,00 ACCOUNTANT SALES LESS VARIABLE COSTS: TOTAL VARIABLE COSTS CONTRIBUTION MARGIN LESS FIXED COSTS NET INCOME 285 Page 6-3 JHJ PUBLISHING production cost info is as follows: Raw materials paper (variable) Raw material ink (variable) 1 reams @$10 each 2 cartridges $20 each 1/2 hours @ $10 each Direct labor (variable) Manufacturing overhead (fixed) $100,000 . Administrative expenses (fixed) $40,000 2 times unit variable cost Unit selling price Determine required production levels: 6. Quantity required to loose $100,000 7. Quantity required to break even 8. Quantity required to earn $1,000,000 9. Net income if only one book is sold 10. Complete table below: INCOME/EXPENSES | SALE OF | TARGET | BREAK- I BREAK EVEN I TARGET HIRING INCOME OF ACCOUNTANT ONE LOSS OFEVEN AFTER $100,00 $1,000,000 SALES LESS VARIABLE COSTS TOTAL VARIABLE COSTS CONTRIBUTION MARGIN LESS FIXED COSTS NET INCOME