Al Jumanah Company Income Statement For the Year Ended December 31, 2019 Sales revenue (2,000 units) $100,000 Variable expenses 60,000 Contribution margin 40,000 Fixed expenses 10.000 Net income (loss) $ 30,000 Instructions: a. Determine the contribution margin in per unit, and as a ratio. b. What is the company's break-even point in sales dollars in 2019? C. How many additional units would the company have to sell in 2020 (compared to 2019) in order to earn net income of $60,000? d. If the company is able to reduce variable costs by $10.00 per unit in 2020 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $70,000? e. Assume that the Company maintains the variable cost and the number of units as in 2019 but wants to increase the profit to $100 000. What would the selling price have to be in order to reach the stockholders' desired profit level? f. In 2020, the company is hoping to increase the targeted profit to $80 000. The company decides to reduce variable cost to 50% of sales, whilst but fixed cost remains unchanged. If the total number of units sold is maintained at 2000 units, calculate the selling price. CASH BUDGET Lama Company has budgeted sales revenues as follows: June July August Credit sales $135,000 $145,000 $90,000 Cash sales 90,000 255.000 195.000 Total sales $225,000 $400.000 $285,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are: June $300,000 July 250,000 August 105,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $48,000 each month, (b) dividends of $105,000 will be paid in July, and (c) purchase of equipment in August for $30,000 cash. The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 8% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July 1 was $50,000. Assume that borrowed money in this case is for one month. Instructions Prepare a cash budget for the months of July and August. Prepare separate schedules for expected collections from customers and expected payments for purchases of inventory