Assume the following scenario for your answers to i$)$ and j$).$ Treat both scenarios independent of

each other:

Management wants to examine the possibility of employing the company's own sales force. The

company would need a sales manager at an annual salary of $$60,000$ and two sales personnel at an

annual salary of $$20,000$ each, plus a commission of $5\%$ of sales. All other fixed costs, as well as

the variable cost percentages would remain the same as in the above income statement.

i$)$ Calculate the sales dollars required for the Quarter $42023,$ to have the same operating

income as projected in the pro forma income statement above if the company employs its

own sales force. $6$ marks

j$)$ Calculate the required unit selling price to have the same operating income as projected in

the pro forma income statement above if the company employs its own sales force. Assume

that a change in the selling price does not affect demand for buckets. $2$ marks

QUESTION II$.18$ MARKS

QUESTION II$-$Part A$.8$ MARKS

Montsela Company uses time$-$and$-$material pricing. The following budgeted cost data is available

for $2022$:

Montsela has budgeted for $5,000$ hours of technician time during the coming year. It desires a $$25$

profit margin per hour of labour and a $30\%$ profit margin on parts. Montsela estimates the total

invoice cost of parts and materials in $2022$ will be $$200,000.$

Tasks: Answer the following questions:

a$)$ Calculate the labour charge per hour $2$ marks

b$)$ Calculate the material loading charge as percentage $2$ marks

c$)$ Montsela has received a request for a job. The company estimates that it would take $100$

hours of labour time and $$600$ in materials. Calculate the total charge for the job. $4$ marks