\fSunn Company manufactures a single productthat sells for $160 per unit and whose variable costs are $120 per unit. The company's annual fixed costs are $629,000. The sales manager predicts that next year's annual sales ofthe company's product will be 39,900 units at a price of $199 per unit. Variable costs are predicted to increase to $139 per unit, but xed costs will remain at $629,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. Contnbuiion margin Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy is to maintain finished goods inventory equal (in units) to 40% of the next month's unit sales. As of June 30, the company has 1,640 finished surfboards in inventory. July August September Budgeted sales units 4, 100 6,100 3, 200 Prepare the production budget for the months of July and August. ATLANTIC SURF Production Budget July August Add: Desired ending inventory Total required units Units to be producedTorres Company budgets merchandise purchases of $15,800 in January, $18,600 in February, and $20,200 in March. For those purpose 50% of purchases are paid in the month of purchase and 50% are paid in the month after 1he purchase. The company purchased $29,000 of merchandise in December. Prepare a schedule of cash payments for merchandise for the months of January, February, and March. Merchandise purchases 95 16.8110 3 13,600 $ 20,200 Cash payments for: _-- Prior period purchases Total cash payments for purchases Karim Corporation requires a minimum $8,900 cash balance. Loans taken to meet this requirement cost 2% interest per month [paid at the end of each month]. Any preliminary cash balance above $8,900 is used to repay loans at monthend. The cash balance on July 1 is $9,300, and the company has no outstanding loans. Budgeted cash receipts [other than for loans received} and budgeted cash payments {other than for loan or interest payments] follow. July August September Cash receipts :5 24,933 5 32,933 :3 43,933 Cash payments 29,353 33,933 32,933 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts {if any] should be indicated with minus sign. Round your nal answers to the nearest whole dollar.) \fCamila Company.r has set the following standard cost per unit for direct materials and direct labor. Direct materials [15 pounds El 53 per pound} i 48 Direct labor {3 hours 9 $15 per hour) 45 During June the company incurred the following actual costs to produce 8,400 units. Direct materials (13?,493 pounds 9 $2.?5 per pound) $ ELSE!!! Direct labor (28,266 hours @ $15.15 per hour} 42?,233 AP = Actual Rate SE? = Standard Rate A0 = Actual Quantity...r SD = Standard Quantity AP = Actual Price SP = Standard Price {1) Compute the direct materials price and quantity variances. {2) Compute the direct labor rate variance and the direct labor efciency variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost Standard Cost