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First Question: ( 10 marks) The following are the basic data for the income and costs of Father Company, which produces CR7 product: Required: 1.Calculate
First Question: ( 10 marks) The following are the basic data for the income and costs of Father Company, which produces CR7 product: Required: 1.Calculate the breakeven point in units and in dollars. 2.If the sales department increases the annual advertising budget by \\( \\$ 1000 \\), which will increase sales by 120 units, would you recommend increasing the advertising budget? 3.If the company improves the quality of the product by increasing the variable costs by one dollar, this will increase sales to 480 units, while the fixed costs remain unchanged. would you recommend the company improving product quality? 4.If the company reduces the selling price by \\( \\$ 2 \\) and increases advertisingss expenses to 1500 \\$. Which will increase sales to 600 units, would you recommend Father Company to make these adjustments? 5.Assuming the company produces and sells 400 units. The company wants to change the salesmen salaries from the fixed salary to a variable commission based on \\( \\$ 1.5 \\) per unit sold. The sales manager believes that this procedure, will increase sales by \15. would you agree to make the adjustments? 6.If one of the customers has offered the company to purchase an additional 150 units, if you know that the company wants to accept this transaction at a profit of \\( \\$ 300 \\).What is the appropriate price that the company can decide to sell the product to this customer? The following information from mother factory in 2020: Compute: 1. manufacturing costs under absorption, variable, and throughput and super variable costing systems per unit. 2. Prepare income statement under absorption and variable costing system. Do your best and include all calculation. The second question: (4 marks) The production plant produces three products \\( (x),(p) \\) and \\( (s) \\). The following are data related to these products: fixed costs in this factory are \\( \\$ 68,000 \\) required: Required: 1. compute the number of units of each product to be sold, to achieve target net income before tax of \\( \\$ 36000 \\). 2. compute the number of units of each product to be sold, to achieve target net income after tax of \\( \\$ 36000 \\). (Assume tax rate is \40 )
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