a. Prepare the schedule of cost of goods manufactured for Product X based on the information given above in (a

	Beginning of August 2020 ($)	During August 2020 ($)	End of August 2020 ($)
Direct material inventory	50,000	30,000	80,000
Work-in-process inventory	64,000	8,000	72,000
Finished goods inventory	110,000	10,000	120,000
Purchases of direct material		100,000
Direct manufacturing labor		160,000
Depreciation plant, building, and equipment		80,000
Repair and maintenance plant		88,000
Marketing, distribution, and customer-service costs		32,000
General and administrative costs		48,000
Sales revenue		840,000

(b) Costs and Sales Details of Product Y

(i) Breakeven Point in units (5 marks)

(ii) Determine the operating income for the current situation given in b above: (5 marks)

(iii) Calculate the sales (units) required to earn a profit of $ 1,000,000. Prove your answer (10 marks)

Product Y is manufactured by the Company as well. The cost and sales details of Product Y are given below:

Particulars
Sales units	5,000 units
Selling price per unit ($)	$ 500
Variable Cost per unit ($)	$ 300
Fixed Costs (($)	$ 120,000

(c) Performance of two subsidiary companies of OCTC

Compute the operating leverage for the two subsidiaries of OCTC (Company A and Company B) for both the situations given (existing & proposed) and comment on the leverage (15 marks)

OCTC has two subsidiary companies (A & B). The cost and sales details of the current situation and proposed situations are given below:

Information	Company A		Company B
	Existing situation	Proposed	Exiting situation	Proposed
Sales (Units)	1000	800	1000	800
Selling price per unit ($)	50	50	50	50
Variable Cost per unit ($)	10	10	15	15
Fixed Costs ($)	12,000	12,000	2,000	2,000