I want the answer for the slides with red color

All Yellow page slides answered by me I am struggling with red colors only

this is the original Question I want 7,8,9,10 question I solved from preparing and 1 to 6

Audi Manufacturing Comp 2021 Monthly Budget Exhibit 1 AB 1 Total 44000 Sales: Produce and sell per month Projecte selling price Units CD2 25500 25 18500 30 D Manufacturing Cost: Parts Direct Labor MFC Overhead (see below) 92000 108000 135000 335000 124000 66000 197500 387500 216000 174000 332500 722500 cost of go! 12 41625 57375 99000 -just to ki 36000 35000 24500 54000 85000 333500 10 - Additional Information on Manufacturing Overhead Cost (MFC): Variable Supplies - ask professor if materials or supplies unrelated to making product Occupancy (utilities, rent, maintenance) Equipment maintenance Equipment depreciation Qually control and production engineering Manufacturing administration 21 Total Manufacturing (MFC) Overhead Additional Info to Exhibit 1 selling & administrative expenses >> Variable manufacturing overhead supplies cost For Question 5) additional budgeted units increase 27 Ani's parent company German Manufacturing Target Profit for AM 0.42 4700 0.58 3500 210000 1.00 8200 5545,000 remall AM a large manufacturer of equipment Set up operation in Denver manufactured two products 1. miniature signaling device used primarily remote operation of garage doors "AB 1" consisted of a signal sender roughly half the size of a pack of cards consisted of receiver a bit larger than signal sender" farge manufacturer of motorired garage doors-agreed to take a minimu Component of garage door unit Joo and Nancy budget manufacturing target 150000 control units a year 222000 units 30 40 41 2. AM designed a similar device to miniature signaling device "CD" unit could be used by a household to turn on lights when arriving after dari slightly more expensive to make receiving part a complete plug in device" Intially expected to sell CO2 unit through mailorder catalogues Joe and Nancy projected sales for 2021" 44 306000 units 45 * AT Nancy volved to see projections result in a budgeted profit exceeding target (5545,000 prote) - noxt year expected trom Parent Company Joe relieved too-states there's not a large margin for error*** Jos trying to estimate what level of sales would be required to provide parent company with targeted profit (5545,000) for year From Exhibit 1. at top** Nancy pulled monthly budgeted figures** -Selling & Administrative expenses -Variable Manufacturing Overhead Supplies Cost 210000 a month 599,000 44000 units Nancy recognized budget was only approximate - expected changes would be made to improve efficiency and perhaps product design -- thought numbers were solid enough to use in her analysis of what was necessary to reach parent company's - target profit In preparing analysis, decided to assume -parts -direct labor Overhead supplies Nancy thought three above could be considered as variable costs" - vary with units produced Everything else would be fixed within time frame & volume range - being considered**** Assumptions 26 Target NOI or (Target Profit") $76,950 Assumptions Q7 AB1 CM CD2 CM AB1 CM per unit CD2 CM per unit $178.375 $192625 $10 Assumptions 09 AB1 units CD2 units 11000 19000 Assumptions 08 Torgot Profit 545000 Assumptions 010 AB1 total units produced CD2 total units produced AB1 Unsold Units CO2 Unsold Units 18900 27300 7900 8300 (Multiple product breakeven). What is the total monthly number of units and monthly sales dollars which would provide the profit target specified by the parent company of 5545,000 for the year? Create a contribution margin statement to proof your answer (10 points) (Hint: You need the weighted CM from question 7 to compute your answer) 3 4 $1.883.594 and grace and Coduced and sold on 11. Land 19.00 h product 115.000 11 000 units of ABT 19.000 units of CO2 each per month 13 AB total manufacturing content CD2 total manufacturing cost per Gumpert ART CD2 Berndt 100 CORO 1 21 Traditional GAAP income statement AM January 2021 Sao AB1 $330.000 CO2 $475 000 Tot Sales SOOS DO Cost of AB1 $200,000 CDR 5190.000 Manufacturing overhead 333500 Total Cost of Saleti 5723.500 Gros Profit 581 500 Selling General Administrative 3210.000 Net Operating Income $12.500 A CD2 Contribution Income Statement Sales 5330.000 S1o. 5104.331 Total H75.000 $164.316 1290031 100% 1 As per CO2 patut Ratio 1905.000 30 25 1327.900 570 1477,012 1694 334500 1242.512 Variable Costs Contribution Margin Fred Costs Net Operating Income B D E What would be the NOI I AM sold 11,000 units of AB1 and 19,000 units of CD2 (from question 9) but produced 18,900 units of AB1 and 27,300 units of CD2, putting the unsold units in finished goods inventory? Create the traditional income statement to show your profit. Explain why there is a difference in the NOI between question 9 and 10? (10 points). (Hint: It has something to do with how fixed costs behave with varying production levels on a unit basis). Cost of Unfinished Goods Inventory*** Formula Units leftover during the year X cost per unit" AB1 237000 CD2 207500 TGAAR any 2001 BV 5. ch TS Gast 181 000 Mgove Controles 2000 1 WOOL H00 2100 Net Operating in . ADE w M NE 0005 whatever should be woor Contoh Se VG Dantage Feed Notering MER MOTO UPV COZ DONNA Telepon th DOL LE LOM Bedre by200 700 500 Dinge Co 000005 OC Ab CO2 Total AB 52000 51100000 5220 3710 2019 So 23490 Net Operating income 33.1 100 15.50 70 100 51 for every 51 60 mese in cong you out NOR Audi Manufacturing In December 2020, Joe Biden, President, and Nancy Pelosi, Controller, of Audi Manufacturing (AM) were checking the budgeted figures for AM's 2021 operations. AM's parent company German Manufacturing has established a target profit for AM of $545,000 for the coming year. Joe and Nancy wanted to make sure they could meet the target. In early 2020, AM a large manufacturer of equipment had set up operations in Denver to manufacture two products. One was a miniature signaling device used primarily for remote operation of garage doors. These AB1" units consisted of a signal sender, about half the size of a pack of cards, and a receiver, which was a bit larger. A large manufacturer of motorized garage doors had agreed to take a minimum of 150,000 AB1 control units a year. Joe and Nancy thought a budget of 222,000 units was a reasonable manufacturing target for 2021. AM also had designed a similar device which could be used by a household to turn on lights when arriving after dark. This unit, called "CD2" was slightly more expensive to make since the receiving part was a complete plug-in device, while the AB1 receiver was a component of the garage door unit. Initially, AM expected to sell the CO2 unit primarily through mail order catalogues. Joe and Nancy projected sales of 306,000 units for 2021. Looking at the budget, Nancy indicated, "I'm relieved to see our projections result in a budgeted profit exceeding the target of $545,000 profit for next year expected by the parent company." "Me too," replied Joe. "But we don't have a large margin for error. Let's see what level of sales would be required to provide the parent company with its targeted profit of $545,000 for the year." To start, Nancy pulled out the monthly budgeted figures shown in Exhibit 1. In addition to these figures, selling and administrative expenses are expected to be $210,000 a month while variable manufacturing overhead supplies cost is expected to be $99,000 for the 44,000 units (222,000 of AB1 + 306,000 of CD2 divided by 12 months). She recognized the budget was only approximate since she expected changes would be made to improve efficiency and perhaps the product design. But she thought the numbers were solid enough for her to use in her analysis of what was necessary to reach the parent company's target profit. In preparing her analysis, she decided to assume parts, direct labor, and overhead supplies could be considered as variable cost since they would vary with units produced, and all the rest would be fixed within the time frame and volume range being considered. 1. 2 3. 4. What is the projected monthly net operating Income (NOI) for AM for 2021 based on the budgeted figures? Create a simple traditional GAAP income statement (s - COGS - GP- SGA- NOI) to show your profit. Calculate Gross Profit Margin. (Note: profit means NOI) (6 points) Reorganize your budgeted monthly income statement from question 1 into a simple contribution income statement (S - VC = CM - FC = NOI). Calculate Contribution Margin Ratio. (10 points) Compute the total manufacturing cost per unit of AB1 and CD2 based on the monthly budgeted figures? (6 points) Compute the degree of operating leverage using your budgeted contribution margin income statement in question 2. Explain how operating leverage affects the NOI of AM. (8 points) If total monthly budgeted units increase by 8,200 units (4,700 units of AB1 and 3,500 units of CD2), compute the new Not using the contribution income statement. By what percent did NOI increase or decrease from the budget? Why? (10 points) (Single product breakeven). Assume AM budgets to manufacture all 44,000 units of only one product AB1 (ignore CD2 and its variable parts and labor cost in this question). Using the selling price of $30 for all 44,000 units and your computed unit VC costs (parts, labor and variable supplies) of AB1, and total fixed costs for the entire company, answer the following questions: Prepare a budgeted contribution income statement to compute the NOI for AM (4 points) 5. 6. a. c b. What is the breakeven point in sales and units for AM? (4 points) What is the margin of safety in units, dollars and percent? (4 points) d. If AM wanted to generate $76,950 in monthly NOI, how many units of AB1 must it sell and what is the sales dollars? Proof your answer by creating a contribution margin statement. (8 points) (Multiple product breakeven). What is the monthly breakeven in sales and units of AB1 and CD2 given the original monthly budget information? Create a contribution Income statement to proof your answer. (10 points). (Hint: You can also use the following formula (in units or percent) in finding the weighted CM to compute your answer. (Sales mix of AB1 CM of AB1) + (Sales mix of CD2 CM of CD2). 7 8 (Multiple product breakeven). What is the total monthly number of units and monthly sales dollars which would provide the profit target specified by the parent company of $545,000 for the year? Create a contribution margin statement to proof your answer. (10 points) (Hint: You need the weighted CM from question 7 to compute your answer) 9. What would be the total manufacturing cost per unit and gross margin per unit of AB1 and CD2 if AM produced and sold only 11,000 units of AB1 and 19,000 units of CD2 per month? Explain the behavior of your costs compared to your answer in question 3? Create a traditional GAAP and a contribution income statement to compute the NOI. (10 points) (Hint: You need to calculate the total manufacturing cost per unit for each product at 11,000 units and 19,000 units respectively. Then create the income statements. You should have the same Nol for both the traditional and contribution income statements) What would be the NOI if AM sold 11,000 units of AB1 and 19,000 units of CD2 (from question 9) but produced 18,900 units of AB1 and 27,300 units of CD2, putting the unsold units in finished goods inventory? Create the traditional income statement to show your profit. Explain why there is a difference in the Nol between question 9 and 10? (10 points). (Hint: It has something to do with how fixed costs behave with varying production levels on a unit basis). 10. Project Requirements: 1. The Project must be prepared using an Excel spreadsheet. The first worksheet in the spreadsheet should be labeled "Assumptions". This sheet is used to enter all of the data from the project description from Exhibit 1. Thereafter, enter each questions' data assumptions and label it with the question number. These assumptions are to be used in the tabs which follow for each question. Next, create seven more worksheet tabs. The first tab is for Questions 1-4 and the remaining questions (questions 5-10) should be answered on separate worksheet tabs and numbered accordingly, i.e. Q1-4, 05, 06, and so on. Only the data assumptions needed for each question should be entered and no answers should be calculated in the Assumptions page. The Assumptions page should not use more than 50 rows of data. 2. 3. All computations and solutions must be linked to the assumptions page by links or formulas. Formulas can also be linked to other worksheets or within worksheets. You are not allowed to type any number in any formula in any worksheet except on the Assumptions page. You must label each question on each spreadsheet. Submit the project (as one document) per team in Canvas/Projects by the due date and time. The project file should be named with the team number as follows, Team #_Project 1.xlsx Students are cautioned not to use any file or template from previous quarters or courses, All files must be created by students during the quarter on their respective group member computers. All files will be scanned to ensure compliance. Any student with files or templates from previous quarters or unknown computers will automatically receive a zero for the project and referred to the Office of Student conduct for further disciplinary action including receiving a failing grade for the course. You are advised to begin early on the project to avoid problems with group members as well as to have any questions, concerns or issued addressed by the instructor well in advance of the due date. Students are hereby warned working on the project on the day before it is due is unlikely to result in the submission of a project which receives a passing grade. 4. 3 Audi Manufacturing Comp 2021 Monthly Budget Exhibit 1 AB 1 Total 44000 Sales: Produce and sell per month Projecte selling price Units CD2 25500 25 18500 30 D Manufacturing Cost: Parts Direct Labor MFC Overhead (see below) 92000 108000 135000 335000 124000 66000 197500 387500 216000 174000 332500 722500 cost of go! 12 41625 57375 99000 -just to ki 36000 35000 24500 54000 85000 333500 10 - Additional Information on Manufacturing Overhead Cost (MFC): Variable Supplies - ask professor if materials or supplies unrelated to making product Occupancy (utilities, rent, maintenance) Equipment maintenance Equipment depreciation Qually control and production engineering Manufacturing administration 21 Total Manufacturing (MFC) Overhead Additional Info to Exhibit 1 selling & administrative expenses >> Variable manufacturing overhead supplies cost For Question 5) additional budgeted units increase 27 Ani's parent company German Manufacturing Target Profit for AM 0.42 4700 0.58 3500 210000 1.00 8200 5545,000 remall AM a large manufacturer of equipment Set up operation in Denver manufactured two products 1. miniature signaling device used primarily remote operation of garage doors "AB 1" consisted of a signal sender roughly half the size of a pack of cards consisted of receiver a bit larger than signal sender" farge manufacturer of motorired garage doors-agreed to take a minimu Component of garage door unit Joo and Nancy budget manufacturing target 150000 control units a year 222000 units 30 40 41 2. AM designed a similar device to miniature signaling device "CD" unit could be used by a household to turn on lights when arriving after dari slightly more expensive to make receiving part a complete plug in device" Intially expected to sell CO2 unit through mailorder catalogues Joe and Nancy projected sales for 2021" 44 306000 units 45 * AT Nancy volved to see projections result in a budgeted profit exceeding target (5545,000 prote) - noxt year expected trom Parent Company Joe relieved too-states there's not a large margin for error*** Jos trying to estimate what level of sales would be required to provide parent company with targeted profit (5545,000) for year From Exhibit 1. at top** Nancy pulled monthly budgeted figures** -Selling & Administrative expenses -Variable Manufacturing Overhead Supplies Cost 210000 a month 599,000 44000 units Nancy recognized budget was only approximate - expected changes would be made to improve efficiency and perhaps product design -- thought numbers were solid enough to use in her analysis of what was necessary to reach parent company's - target profit In preparing analysis, decided to assume -parts -direct labor Overhead supplies Nancy thought three above could be considered as variable costs" - vary with units produced Everything else would be fixed within time frame & volume range - being considered**** Assumptions 26 Target NOI or (Target Profit") $76,950 Assumptions Q7 AB1 CM CD2 CM AB1 CM per unit CD2 CM per unit $178.375 $192625 $10 Assumptions 09 AB1 units CD2 units 11000 19000 Assumptions 08 Torgot Profit 545000 Assumptions 010 AB1 total units produced CD2 total units produced AB1 Unsold Units CO2 Unsold Units 18900 27300 7900 8300 (Multiple product breakeven). What is the total monthly number of units and monthly sales dollars which would provide the profit target specified by the parent company of 5545,000 for the year? Create a contribution margin statement to proof your answer (10 points) (Hint: You need the weighted CM from question 7 to compute your answer) 3 4 $1.883.594 and grace and Coduced and sold on 11. Land 19.00 h product 115.000 11 000 units of ABT 19.000 units of CO2 each per month 13 AB total manufacturing content CD2 total manufacturing cost per Gumpert ART CD2 Berndt 100 CORO 1 21 Traditional GAAP income statement AM January 2021 Sao AB1 $330.000 CO2 $475 000 Tot Sales SOOS DO Cost of AB1 $200,000 CDR 5190.000 Manufacturing overhead 333500 Total Cost of Saleti 5723.500 Gros Profit 581 500 Selling General Administrative 3210.000 Net Operating Income $12.500 A CD2 Contribution Income Statement Sales 5330.000 S1o. 5104.331 Total H75.000 $164.316 1290031 100% 1 As per CO2 patut Ratio 1905.000 30 25 1327.900 570 1477,012 1694 334500 1242.512 Variable Costs Contribution Margin Fred Costs Net Operating Income B D E What would be the NOI I AM sold 11,000 units of AB1 and 19,000 units of CD2 (from question 9) but produced 18,900 units of AB1 and 27,300 units of CD2, putting the unsold units in finished goods inventory? Create the traditional income statement to show your profit. Explain why there is a difference in the NOI between question 9 and 10? (10 points). (Hint: It has something to do with how fixed costs behave with varying production levels on a unit basis). Cost of Unfinished Goods Inventory*** Formula Units leftover during the year X cost per unit" AB1 237000 CD2 207500 TGAAR any 2001 BV 5. ch TS Gast 181 000 Mgove Controles 2000 1 WOOL H00 2100 Net Operating in . ADE w M NE 0005 whatever should be woor Contoh Se VG Dantage Feed Notering MER MOTO UPV COZ DONNA Telepon th DOL LE LOM Bedre by200 700 500 Dinge Co 000005 OC Ab CO2 Total AB 52000 51100000 5220 3710 2019 So 23490 Net Operating income 33.1 100 15.50 70 100 51 for every 51 60 mese in cong you out NOR Audi Manufacturing In December 2020, Joe Biden, President, and Nancy Pelosi, Controller, of Audi Manufacturing (AM) were checking the budgeted figures for AM's 2021 operations. AM's parent company German Manufacturing has established a target profit for AM of $545,000 for the coming year. Joe and Nancy wanted to make sure they could meet the target. In early 2020, AM a large manufacturer of equipment had set up operations in Denver to manufacture two products. One was a miniature signaling device used primarily for remote operation of garage doors. These AB1" units consisted of a signal sender, about half the size of a pack of cards, and a receiver, which was a bit larger. A large manufacturer of motorized garage doors had agreed to take a minimum of 150,000 AB1 control units a year. Joe and Nancy thought a budget of 222,000 units was a reasonable manufacturing target for 2021. AM also had designed a similar device which could be used by a household to turn on lights when arriving after dark. This unit, called "CD2" was slightly more expensive to make since the receiving part was a complete plug-in device, while the AB1 receiver was a component of the garage door unit. Initially, AM expected to sell the CO2 unit primarily through mail order catalogues. Joe and Nancy projected sales of 306,000 units for 2021. Looking at the budget, Nancy indicated, "I'm relieved to see our projections result in a budgeted profit exceeding the target of $545,000 profit for next year expected by the parent company." "Me too," replied Joe. "But we don't have a large margin for error. Let's see what level of sales would be required to provide the parent company with its targeted profit of $545,000 for the year." To start, Nancy pulled out the monthly budgeted figures shown in Exhibit 1. In addition to these figures, selling and administrative expenses are expected to be $210,000 a month while variable manufacturing overhead supplies cost is expected to be $99,000 for the 44,000 units (222,000 of AB1 + 306,000 of CD2 divided by 12 months). She recognized the budget was only approximate since she expected changes would be made to improve efficiency and perhaps the product design. But she thought the numbers were solid enough for her to use in her analysis of what was necessary to reach the parent company's target profit. In preparing her analysis, she decided to assume parts, direct labor, and overhead supplies could be considered as variable cost since they would vary with units produced, and all the rest would be fixed within the time frame and volume range being considered. 1. 2 3. 4. What is the projected monthly net operating Income (NOI) for AM for 2021 based on the budgeted figures? Create a simple traditional GAAP income statement (s - COGS - GP- SGA- NOI) to show your profit. Calculate Gross Profit Margin. (Note: profit means NOI) (6 points) Reorganize your budgeted monthly income statement from question 1 into a simple contribution income statement (S - VC = CM - FC = NOI). Calculate Contribution Margin Ratio. (10 points) Compute the total manufacturing cost per unit of AB1 and CD2 based on the monthly budgeted figures? (6 points) Compute the degree of operating leverage using your budgeted contribution margin income statement in question 2. Explain how operating leverage affects the NOI of AM. (8 points) If total monthly budgeted units increase by 8,200 units (4,700 units of AB1 and 3,500 units of CD2), compute the new Not using the contribution income statement. By what percent did NOI increase or decrease from the budget? Why? (10 points) (Single product breakeven). Assume AM budgets to manufacture all 44,000 units of only one product AB1 (ignore CD2 and its variable parts and labor cost in this question). Using the selling price of $30 for all 44,000 units and your computed unit VC costs (parts, labor and variable supplies) of AB1, and total fixed costs for the entire company, answer the following questions: Prepare a budgeted contribution income statement to compute the NOI for AM (4 points) 5. 6. a. c b. What is the breakeven point in sales and units for AM? (4 points) What is the margin of safety in units, dollars and percent? (4 points) d. If AM wanted to generate $76,950 in monthly NOI, how many units of AB1 must it sell and what is the sales dollars? Proof your answer by creating a contribution margin statement. (8 points) (Multiple product breakeven). What is the monthly breakeven in sales and units of AB1 and CD2 given the original monthly budget information? Create a contribution Income statement to proof your answer. (10 points). (Hint: You can also use the following formula (in units or percent) in finding the weighted CM to compute your answer. (Sales mix of AB1 CM of AB1) + (Sales mix of CD2 CM of CD2). 7 8 (Multiple product breakeven). What is the total monthly number of units and monthly sales dollars which would provide the profit target specified by the parent company of $545,000 for the year? Create a contribution margin statement to proof your answer. (10 points) (Hint: You need the weighted CM from question 7 to compute your answer) 9. What would be the total manufacturing cost per unit and gross margin per unit of AB1 and CD2 if AM produced and sold only 11,000 units of AB1 and 19,000 units of CD2 per month? Explain the behavior of your costs compared to your answer in question 3? Create a traditional GAAP and a contribution income statement to compute the NOI. (10 points) (Hint: You need to calculate the total manufacturing cost per unit for each product at 11,000 units and 19,000 units respectively. Then create the income statements. You should have the same Nol for both the traditional and contribution income statements) What would be the NOI if AM sold 11,000 units of AB1 and 19,000 units of CD2 (from question 9) but produced 18,900 units of AB1 and 27,300 units of CD2, putting the unsold units in finished goods inventory? Create the traditional income statement to show your profit. Explain why there is a difference in the Nol between question 9 and 10? (10 points). (Hint: It has something to do with how fixed costs behave with varying production levels on a unit basis). 10. Project Requirements: 1. The Project must be prepared using an Excel spreadsheet. The first worksheet in the spreadsheet should be labeled "Assumptions". This sheet is used to enter all of the data from the project description from Exhibit 1. Thereafter, enter each questions' data assumptions and label it with the question number. These assumptions are to be used in the tabs which follow for each question. Next, create seven more worksheet tabs. The first tab is for Questions 1-4 and the remaining questions (questions 5-10) should be answered on separate worksheet tabs and numbered accordingly, i.e. Q1-4, 05, 06, and so on. Only the data assumptions needed for each question should be entered and no answers should be calculated in the Assumptions page. The Assumptions page should not use more than 50 rows of data. 2. 3. All computations and solutions must be linked to the assumptions page by links or formulas. Formulas can also be linked to other worksheets or within worksheets. You are not allowed to type any number in any formula in any worksheet except on the Assumptions page. You must label each question on each spreadsheet. Submit the project (as one document) per team in Canvas/Projects by the due date and time. The project file should be named with the team number as follows, Team #_Project 1.xlsx Students are cautioned not to use any file or template from previous quarters or courses, All files must be created by students during the quarter on their respective group member computers. All files will be scanned to ensure compliance. Any student with files or templates from previous quarters or unknown computers will automatically receive a zero for the project and referred to the Office of Student conduct for further disciplinary action including receiving a failing grade for the course. You are advised to begin early on the project to avoid problems with group members as well as to have any questions, concerns or issued addressed by the instructor well in advance of the due date. Students are hereby warned working on the project on the day before it is due is unlikely to result in the submission of a project which receives a passing grade. 4. 3