In the following chart you will find the expenses when Cotton Clean produces and sells 10,000...

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In the following chart you will find the expenses when Cotton Clean produces and sells 10,000 shirts: Factory rent $42,000 Company advertising 18,000 Wages paid to seamstresses 75,000 Straight line depreciation on salespersons' vehicles 25,000 Thread 1,000 Utilities for factory 22,000 Cutting room supervisor's salary 30,000 President's salary 75,000 Cotton material 42,000 Buttons 750 Factory insurance 15,000 Straight line depreciation on sewing machines 6,000 Wages paid to cutters 50,000 Sales commissions 10% of sales Selling price per unit 50 a. Compute: 1. Direct materials. 2. Direct labor. 3. Fixed Manufacturing overhead. 4. Variable manufacturing overhead. 5. Total manufacturing costs. 6. Prime cost. Conversion cost. 7. 8. Fixed period cost. 9. Variable period cost. b. Calculate the break-even point in units and verify the BEP. C. How much would they have to sell to get a $100,000 profit? d. What is the margin of safety in percentage of sales? What does it mean? e. If the sales increase by 5%, how much will the income increase in dollars? f. The company is considering using a different material that costs 10% more but will allow them to reduce the manufacturing fixed costs by 0.5%. Should they change? g. If they accept the changes in f, how many units do they have to sell to break even? Write the report addressed to the production manager indicating if the company should change the material or not. In the following chart you will find the expenses when Cotton Clean produces and sells 10,000 shirts: Factory rent $42,000 Company advertising 18,000 Wages paid to seamstresses 75,000 Straight line depreciation on salespersons' vehicles 25,000 Thread 1,000 Utilities for factory 22,000 Cutting room supervisor's salary 30,000 President's salary 75,000 Cotton material 42,000 Buttons 750 Factory insurance 15,000 Straight line depreciation on sewing machines 6,000 Wages paid to cutters 50,000 Sales commissions 10% of sales Selling price per unit 50 a. Compute: 1. Direct materials. 2. Direct labor. 3. Fixed Manufacturing overhead. 4. Variable manufacturing overhead. 5. Total manufacturing costs. 6. Prime cost. Conversion cost. 7. 8. Fixed period cost. 9. Variable period cost. b. Calculate the break-even point in units and verify the BEP. C. How much would they have to sell to get a $100,000 profit? d. What is the margin of safety in percentage of sales? What does it mean? e. If the sales increase by 5%, how much will the income increase in dollars? f. The company is considering using a different material that costs 10% more but will allow them to reduce the manufacturing fixed costs by 0.5%. Should they change? g. If they accept the changes in f, how many units do they have to sell to break even? Write the report addressed to the production manager indicating if the company should change the material or not.