$9.$ Using the data find out if Troll House Cookies is making a profit at their current sales price.

a$.$ Use the contribution margin approach to compute the company's monthly breakeven point in units.

b$.$ Use the contribution margin ratio approach to compute the breakeven point in sales dollars.

c$.$ Use the contribution marginKJ approach to compute the monthly sales level $($in units$)$ required to earn a target operating income of $$5,000.$

d$.$Calculate the current operating income at the current sales level.

Note $!!!-$ ANSWER ALL THE QUESTIONS IN THE BLUE BOX $($SHOW CACULATIONS$)$

Coconut Flakes Purchase $$20,000$

Oven Depreciation $$10,000$

Computer Insurance $$5,000$

Bakery Security Guard Wages $$20,000$

Flour Purchased $$25,000$

Bakers Salaries $$50,000$

Bakery Electricity $$1,000$

Eggs Purchased $$30,000$

Corporate Headquarters Heating $$7,000$

Cookie Shipping $$1,000$

Butter Purchased $$15,000$

Baking Supervisor Salary $$30,000$

Sanitary Gloves Purchased $($Worn by Bakers$)$ $$5,500$

Sugar Purchased $$20,000$

Beg. Direct Materials $$50,000$

Ending Direct Materials $$60,000$

Beg. Work$-$In$-$Process Inventory $$10,000$

Beg. Finished Goods $$6,000$

Ending Work$-$In$-$Process Inventory $$5,000$

Ending Finished Goods $$8,000$

Cookies Produced $110,000$ cookies

Cookies Sold $100,000$ cookies

Actual Direct Labor Hours Used $500$ hrs

After categorizing the costs, we need to record the transactions for our business for the year. Assume Troll House Cookies uses process costing and allocates manufacturing overhead based on machine hours. Troll House Cookies expects to incur $$80,000$ of manufacturing overhead costs, and to use $400$ direct labor hours during fiscal year $2024.$ Troll House Cookies reported the following inventories at May $31,2024$:

Fremont Troll House Cookies has been baking coconut cookies for $5$ years. They have been selling their cookies for $$5$ each and they are wondering if they are charging the right price.

To help them determine a good price for their product, we must put together and analyze their statements.