Could you please answer the following: Requirement # 1 break- even point in terms of (a) sales units or (b) sales dollars Requirement # 3 Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product HG ad the break- even point. Extreme Equipment Co. manufactures and markets a number of rope products. Management is considering the future of Product HG, a special rope for hang gliding, that has not been as profitable as planned. Since Product HG is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year?s plans call for a $200 selling price per 100 yards of HG rope. Its fixed costs for the year are expected to be $330,000, up to a maximum capacity of 20,000,000 yards of rope. Forecasted variable costs are $170 per 100 yards of HG rope. Required 1. Estimate Product HG?s break-even point in terms of (a) sales units and (b) sales dollars. 2. Prepare a CVP chart for Product HG like that in Exhibit 22.14. Use 20,000,000 yards as the maximum number of sales units on the horizontal axis of the graph, and $4,000,000 as the maximum dollar amount on the vertical axis. 3. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product HG at the break-even point. Also Please do the attach. Thank you 23-1 Troy Company prepares monthly budgets. The current budget plans for a September ending inventory of 38,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the three most recent months follow. (1) Prepare the merchandise purchases budget for the months of July, August, and september.(2) Compute the ratio of ending inventory to the next month's sales for each budget prepared in part 1.(3) How many units are budgeted for sale in October? Sales(Units) Purchases(Units) July........ 170,000 200,000 August...... 320,000 312,000 September..... 280,000 262,000 _________________________________________________________ 23-2 Franke Co. budgeted the following cash receipts and cash disbursements for the first three months of next year. Cash Receipts Cash Disbursmenets July......... $525,000 $484,000 February...... 411,000 350,000 March....... 456,000 520,000 According to a credit agreement with the company's bank, Franke promises to have a minimum cash balance of $20,000 at each month-end. In return, the bank has agreed that the company can borrow up to $160,000 at an annual interest rate of 12%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company has cash balance of $20,000 and a loan balance of $40,000 at January 1. Prepare monthly cash budgets for each of the first three months of next year.

EXERCISE 23- 1 1. Merchandise Purchases Budget Note: Italic numbers represent known information provided in the exercise. Troy Company Merchandise Purchase Budget For July, August, and September Next month's budgeted sales JULY 320,000 Ratio of inventory to next month sales X 20% Budgeted ending inventory AUGUST 280,000 (9) 64,000 Add budgeted sales for month 20% 234,000 34,000 Less beginning inventory Budgeted merchandise purchases (9) X 56,000 (3) 170,000 Required units available inventory X (6) SEPTEMBER 190,000 (10) 20% (9) 38,000 320,000 280,000 (7) 376,000 (4) 318,000 (1) (8) 64,000 (5) 56,000 (2) 200,000 312,000 262,000 The following notes (1) through (10) provide supporting calculations and explanations. Notes: (1) September required units Ending inventory Add budgeted sales Total required in September 38,000 280,000 318,000 (2) September Beginning Inventory Total required (1 above) Less budgeted purchase September Beginning Inventory 318,000 (262,000) 56,000 (3) September Beginning Inventory= August Ending Inventory (4) August required units Ending inventory Add budgeted sales Total required in August 56,000 320,000 376,000 (5) August beginning inventory Total required (4 above) Less budgeted purchases August beginning inventory 376,000 (312,000) 64,000 (6) August Beginning inventory= July ending inventory (7) July required units Ending inventory Add budgeted sales Total required in July 64,000 170,000 234,000 (8) July Beginning Inventory Total required ( see 7 above) Less budgeted purchases July Beginning Inventory 234,000 (200,000) 34,000 (9) Percent of Sales to be held as Ending Inventory Ending Inventory for August September Sales = 560,000 280,000 = This percentage is constant for the three months. (10). October expected sales September ending inventory Required % 20% 38,000 20% = 2. 190,000 Monthly ending inventory is 20% of next month's sales (see note # 9) 3. = October budgeted sales= 190,000 (see note # 10 above) EXERCISE 23- 2 FRANKE COMPANY Cash Budget For January, February, and March JANUARY FEBRUARY MARCH Beginning cash balancce Cash receipts Total Cash available 0 0 0 0 0 0 0 Cash disbursements Interest Expense January ( 40,000 x 1%) Preliminary cash balance 0 Additional loan from bank Repayment of loan to bank 0 0 Ending cash balance 0 0 0 Ending Loan balance 0 0 2,400