I need help with part of question 4 and 5

Koontz Company manufactures two models of industrial componentsa Basic model and an Advanced Mode]. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct laborhours. Koontz's controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 Sales $3,000,000 $2,000,000 $5,000,000 Cost of goods sold 2,300,000 1,350,000 3,650,000 Grosa margin 700,000 650,000 1,350,000 Selling and administrative expenses 720,000 480,000 1,200,000 Net operating income (loss) $ (20'000) $ 170'000 $ 150'000 Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental approach. The overhead costs in the company's Molding Department would be allocated based on machine-hours and the overhead costs in its Assembly and Pack Department would be allocated based on direct laborhours. To enable further analysis, the controller gathered the following information: Assemble Molding and Pack Total Manufacturing overhead costs $ 787,500 $ $62,500 $1,350,000 Direct labor hours: Basic 10,000 20,000 30,000 Advanced 5,000 10,000 15,000 Machine hours: Basic 12,000 - 12,000 Advanced 10,000 - 10,000 4. Using your activitybased cost assignments from requirement 3, prepare a contribution format segmented income statement that is adapted from Exhibit 48. (Hint: Organize all of the company's costs into three categories: variable expenses, traceable xed expenses. and common fixed expenses.) 5. Using your contribution format segmented income statement from requirement 4, calculate the break-even point in dollar sales for the Advanced model. Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented income statement. (Round your intermediate calculations to 2 decimal places.) $ 5,000,000 0 $ 3,000,0000 $ 2000,0000 Variable expenses: _ Direct materials 1,400,000 0 800,000 0 600,000 0 Direct labor 900,000 0 600,000 0 300,000 0 Sales commissions 350,000 0 150,000 0 200,000 0 1,550,000 1 ,100,000 9 _ 1,450,000 900,000 350,000 0 150,000 0 200,000 0 1,270,000 9 488.215 9 781,786 9 Total variable expenses Contribution margin Traceable xed expenses: Advertising Machining o 5. Using your contribution format segmented income statement from requirement 4, calculate the breakeven point in dollar sales for the Advanced model. ' Q Answer is not complete. Complete this question by entering your answers in the tabs below. Using your contribution format segmented income statement from requirement 4, calculate the break-even point in dollar sales for the Advanced model. (Round your intermediate calculations to 2 decimal places. Round your final answer to the nearest whole dollar.) $ 2,181,7460 Contribution Format Segments Defined as Divisions Divisions Business Consumer Total Products Products Company Division Division Sales . . $500,000 $300,000 $200,000 Variable expenses: Variable cost of goods sold 180,000 120,000 60,000 Other variable expenses . .. . . . . . . .. 50,000 30,000 20,000 Total variable expenses . .. . . . . . . 230,000 150,000 80,000 Contribution margin ... . . . . . . . . . . 270,000 150,000 120,000 Traceable fixed expenses . . . . . . . . 171,000 90,000 81,000 Divisional segment margin . . . . 99,000 $ 60,000 $ 39,000 Common fixed expenses not traceable to individual divisions . .. . . ... 85,500 Net operating income . . .. . .. . . ..... $ 13,500 Segments Defined as Product Lines of the Consumer Products Division Consumer Product Line Products Computer Division Clip Art Games Sales .... . . . ....................4. $200,000 $75,000 $ 125,000 Variable expenses: Variable cost of goods sold . .. . . . . . .. 60,000 20,000 40,000 Other variable expenses . . .. . . . . . . 20,000 5,000 15,000 Total variable expenses 80,000 25,000 55,000 Contribution margin . .. . .. . . . 120,000 50,000 70,000 Traceable fixed expenses . . 70,000 30,000 40,000 Product-line segment margin . 50,000 $20,000 $ 30,000 Common fixed expenses not traceable to individual product lines . . . 11,000 Divisional segment margin . . . . . . . . . . . ... $ 39,000 Segments Defined as Sales Channels for One Product Line, Computer Games, of the Consumer Products Division Sales Channels Computer Online Retail Games Sales Stores Sales . . $125,000 $100,000 $25,000 Variable expenses: Variable cost of goods sold . . . . . . . . 40,000 32,000 8,000 Other variable expenses 15,000 5.000 10,000 Total variable expenses .... .. . . .. . ... 55,000 37,000 18,000 Contribution margin .. . ... . . . . . . . . . . . . . . 70,000 63,000 7,000 Traceable fixed expenses . . .... . . . . . . 25,000 15,000 10,000 Sales-channel segment margin ... . . . . .. 45,000 $ 48,000 $ (3,000) Common fixed expenses not traceable to individual sales channels . . . 15,000 Product-line segment margin ...... . . ... $ 30,000