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can someoone check if I did make a mistake. 2.(10 points) Perkins Company produces and sells a single product. The company's income statement for the

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2.(10 points) Perkins Company produces and sells a single product. The company's income statement for the most recent month is given below. Sales (15,000 units at $29 per unit)......... Less variable costs: Direct materials (variable)..................... $60,000 Direct labor (variable)................. 75.000 Variable factory overhead............ 45.000 Variable selling and other expenses..... 30,000 Contribution margin..... Less fixed expenses: Fixed factory overhead ....................... 100,000 Fixed selling and other expenses. 85.000 Net operating income... 210.000 225.000 185.000 S 40.000 There are no beginning or ending inventories. Required: a. Compute the company's break-even point in units and sales dollars. b. What would the company's monthly net operating income be if sales and total variable costs increased by 30% and total fixed factory overhead dropped by $25,000? c. What total level of sales (in units) must the company achieve in order to earn a target profit of $145,000? d. The company has decided to automate a portion of its operations. The change will reduce direct labor costs per unit by 50 percent, but it will double the costs for fixed factory overhead. Every other cost remains unchanged. Compute the new break-even point in units. - 1 1 a 1 Amount 435,000 Per unit 29 1 1 1 1 1 5 Soles Price Less variable cosi Direct material Direct Labor Factory overhead Salling Expense Total variable cost contribuintes 1 $60,000 -15,000 395,000 15,000 345,000 15.00u $30,000 15,00 $ 210,000 15,00 $ 225,500 + 15,000 - 1 15 A) Break even units = Fixed cost/contr bintion per unit 185,000 = 15= 12,333 Break even in dollar 13,333 X 24 = $ 357,667 ARAR per unit 377 56556 B) Slaes Price Less variable cost 5.2 Direct meteria Direct Labor 78,000 17,500 58,500 39,000 273,0 292,500 3.9 2.6 19.5 Factory overhead Salling Expense total variable cost contribution Fixed cost Fixed factory overhead Fixed selling Expense Total Fixed cost Net operating income 75,000 85,000 160,000 132,500 C Break even units. = (Fixed cost + taget Profit/contbustion per unit (185,000 +145,000)/15 = 22,000 units D Break even units = (155,000 + 100,000)/(15+5/2) = 16,286 units

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