How do I find the bidgeted amounts of sales units and sales dollars?

Topic 1 (20 points)

The board of directors of Midwest Manufacturing Company recently approved the companys budget and production plan for its coming fiscal year, 20X6.Budgeted units of production equal budgeted unit sales for the companys single product.Using the information below, included in the budget and production plan:

a. Compute the amount of required sales number of units and dollars necessary to achieve

the companys budgeted net income for its fiscal year ended (FYE) December 31, 20X6

b. Prepare the companys budgeted income statement for its FYE December 31, 20X6 using

the Variable Costing Method (Contribution Margin Format).

Show all computations in good form and label properly all amounts presented.

Budgeted amounts: Budgeted amounts: Per unit Sales units ? Product selling price (SP) $400.00 Sales dollars ? Variable manufacturing costs: Fixed costs: Direct materials (DM) $78.75 Manufacturing overhead (MOH) costs $5,250,000 Direct labor (DL) $66.25 Selling and administrative (S&A) costs $5,625,000 Manufacturing overhead (MOH) costs $92.50 Research and development (R&D) costs $3,750,000 Variable selling and admin. (S&A) costs $37.50 Net income $6,000,000 Estimated combined effective tax rate 40.0% (i.e., 0.40)

a.Amount of required sales number of units and dollars necessary to achieve the companys budgeted net income for its fiscal year ended (FYE) December 31, 20X6: