A. Calculate the break-even quantity

B. If the expected sales for the budgeted period is 6,500 units, calculate the Margin of Safety units. Explain the term Margin of Safety.

C. Marketing survey indicated that sales expected to increase by 10% (from expected sales of 6,500 units) if company is willing to spend additional $100,000 on advertising & promotion expenditure. Perform a Cost/Benefit analysis if the company decides on additional marketing & promotion activity.

D. Calculate the target profit quantity if Enola planned to earn $300,000 in profit before taxes

E. Determine the number of units that must be sold to generate an after-tax profit of $90,000 if there is a 40 percent tax rate.

F. Prepare a Contribution Margin Format Income Statement if expected sales is 6,500 units.

Question 3 Enola, Inc., manufactures a product that sells for $400. The variable costs per unit are as follows: Direct materials $100 Direct labor 80 Variable manufacturing overhead 50 Variable selling expenses 20 During the year, the budgeted fixed manufacturing overhead is estimated to be $500,000, and budgeted fixed selling and administrative costs are expected to be $250,000