Crispi Brewing, is a small brewing company that manufactures small-batch beers. They produce only 12 oz. cans of beer for distribution and sale. To make the beer, the grain is boiled to make a wort. That wort is then boiled with hops to add flavor, aroma, and bitterness. The boiled wort is then cooled as it is added to a fermentation vessel, where yeast is added and the cooled wort is left to ferment. After the fermentation is complete, the beer is transferred to a bright tank and filtered. Finally, the beer is carbonated and added to cans. Melissa is the brewer. She is an employee of Crispi and her only role is to make the beer. The beer is made in a warehouse that includes the necessary equipment to brew and can the beer. Rent for the space $3,000 per quarter. The brewing equipient equipment, including the canning machine and the refrigeration cost $316,000. That equiment is depreciated straight-line over ten years such that the equipoment expense is $7,900 per quarter. There is no additional expense for storing the equipmet, material, or finished goods. The Ending Balance of inventory on Dec. 31, 2021: Item Ending Amount Ending Balance ($)

Item	Ending Amount	Ending Balance ($)
Grain	1,000 lbs	$700
Hops	100 lbs	$1,200
Empty Cans	20,000	$7,000
Finished Cans of Beer	1,000	$800
Beer in Fermentation or Bright Tanks	?	$29,000

In the first quarter of 2022, Crispi sold 78,000 cans of Crispi beer. The net revenue from the sales was $58,500.

During the first quarter of 2022, Crsipi incurred the following expenses:

Item	Expense ($)
Wages to Melissa for Production	$15,000
Rent for the Warehouse	$3,000
Grain	$9,500
Hops	$6,000
Empty Cans	$25,200
Utilities	$3,000
Advertising Expenses	$900
Other General and Administrative Expenses	$1,500

The ending balance at the end of the first quarter of 2022 was as follows:

Item	Ending Amount	Ending Balance ($)
Grain	1,500 lbs	$1,050
Hops	200 lbs	$2,400
Empty Cans	10,500	$3,675
Finished Cans of Beer	4,500	$3,780
Beer in Fermentation or Bright Tanks	?	$32,000

1. What is the TOTAL Cost of Goods Sold in the first quarter of 2022?

2. What is the Net Income for the first quarter of 2022?

3. What is the Net Income for the first quarter of 2022?

4. How many cans of beer were produced in the first quarter of 2022?

5. What is the COGM per can? (please round your answer to the nearest penny)

6. Crispi is considering a new contract with Melissa, where the salary remians the same, but there is a bonus if cost of goods manufactured per unit decreases by $0.05 per can of beer compared with the cost of goods manufactured per unit in the first quarter of 2022. The bonus ins not included when determining whether she has obtained the goal. Assuming the variable costs, the depreciation expense, and the rent and utilties would all remain the same will Melissa earn a bonus if she produces 82,000 cans of beer? Yes or No

7. Crispi is considering a new contract with Melissa, where the salary remians the same, but there is a bonus if cost of goods manufactured per unit decreases by $0.05 per can of beer compared with the cost of goods manufactured per unit in the first quarter of 2022. The bonus is not included when determining whether she has obtained the goal. Assuming the variable costs, the depreciation expense, and the rent and utilities would all remain the same will Melissa earn a bonus if she produces 100,000 cans of beer? For this and the next set of questions, please assumethat Melissa can acquire any variable inputs such as cans or direct material at the same cost per unit asnecessary to produce the 100,000 cans.

Yes? No?

8. If demand is not expected to change does the bonus incentive described above, which encourages greater production affect net income (before considering the bonus payment)?

Select: Yes, it increases the income

No, it has no effect on the income

Yes, it decreases the income

9. Assuming the variable costs, the depreciation expense, and the rent and utilties would all remain the same, but the bonus is based on the variable cost of goods manufactured per unit decreasing by $0.05 per can of beer compared with the variable cost of goods manufactured per unit in the first quarter of 2022. Will Melissa earn a bonus if she produces 100,000 cans of beer? Answer and explain in three sentences or less whether you think this is a better bonus scheme?