Al-Naseem Company fixed costs are OMR 75,000 per year. The variable cost of each unit is OMR 15, and sold for OMR 45 per unit. The company sold 4,000 units during the prior year. (Ignore income taxes) Required 1. Compute the break-even point in units. 2. How many unit must the company sell to earn a target profit of OMR 20,000? 3. The sales manager believes that a reduction in the sales price to OMR 40 will result in orders for 200 more units each year. Should the price change discussed above be made? Explain. Menotti Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Menotti identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost Driver Amount of Driver Engineering design $120,000 Engineering hours 3,000 Purchasing 80,000 Number of parts 10,000 Other overhead 250,000 Direct labor hours 40,000 Menotti worked on five jobs in July. Data are as follows: Job 50 Job 51 Job 52 Job 53 Job 54 Balance, July 1 $32,450 $40,770 $29,090 $0 $0 Direct materials $26,000 $37,900 $25,350 $11,000 $13,560 Direct labor $40,000 $38,500 $43,000 $20,900 $18,000 Engineering hours 20 10 15 100 200 Number of parts 150 180 200 500 300 Direct labor hours 2,500 2,400 2,600 1,200 1,100 By July 31, Jobs 50 and 52 were completed and sold. The remaining jobs were in process. Required: 1. Calculate the activity rates for each of the three overhead activities. 2. Prepare job-order cost sheets for each job showing all costs through July 31. 3. Calculate the balance in Work in Process on July 31. 4. Calculate cost of goods sold for July.