I've attached the original problems as well as my attempted solutions.

BSA 322 Fall, 2022 Chapter 20 Lab Handout PR 20-1A Classify costs Obi. 1 Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail Chains. The following costs are incurred in the production and sale of blue jeans: a. b. c. d. e. f. g. neopea F'l" Shipping boxes used to ship orders Consulting fee of $200,000 paid to industry specialist for marketing advice Straight-line depreciation on sewing machines Salesperson's salary, $10,000 plus 2% of the total sales Fabric Dye Thread Salary of designers Brass buttons Legal fees paid to attorneys in defense of the company in a patent infringement suit, $50,000 plus $87 per hour insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per $30,000 of insured value over $8,000,000 Rental costs of warehouse, $5,000 per month plus $4 per square foot of storage used . Supplies Leather for patches identifying the brand on individual pieces of apparel Rent on plant equipment, $50,000 per year Salary of production vice president Janitorial services, $2,200 per month Wages of machine operators Electricity costs of $0.10 per kilowatthour Property taxes on property, plant, and equipment Instructions Classify the preceding costs as either fixed, variable, or mixed. Use the following tabular headings and place an X in the appropriate column Identify each cost by letter in the cost column. Cost Fixed Cost Variable Cost Mixed Cost BSA 322 Fall, 2022 Chapter 20 Lab Handout PR 20~2A Breakeven sales under present and proposed conditions Obj. 2, 3 e" 2.b.$100 Portmann Company, operating-at full capacity, sold 1,000,000 units at a price of $188 per unit , during the current year. Its income statement is as follows: 6H0? Sales .............................. $ 188,000,000 ME HOW Cost ofgoods sold ................ (100,000,000) Gross profit ....................... $ 88,000,000 Expenses: Selling expenses ............... $16,000,000 Administrative expenses ....... 12,000,000 Total expenses ............. (28,000,000) Operating income ................. S 60,000,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 70% 30%;" Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program for the following year that will permit an increase of $11,280,000 in yearly sales. The expansion will increase fixed costs by $5,000,000 but will not affect the relationship between sales and variable costs. instructions 1. Determine the total variable costs and the total fixed costs for the current year. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Compute the break-even sales (unitS) for the current year. Compute the breakeven sales (units) under the proposed program for the following year. Determine the amount of sales (units) that would be necessary under the proposed program to realize ie 360,000,000 of operating income that was earned in the current year. Determine the maximum operating income possible with the expanded plant. 7. If the proposal is accepted and sales remain at the current level, what will the operating in come or loss be for the following year? 8. Jinana Based on the data given, would you recommend accepting the proposal? Explain. Ens-\\LNP 53' BSA 322 Fall, 2022 Chapter 20 Lab Handout PR 20-5A Sales mix and break-even sales Obj. 5 1. 4,030 units Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Laptops $1,60 $800 40% Tablets 850 350 60% The estimated fixed costs for the current year are $2,498,600. Instructions 1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break-even point for the current year. 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. . Assume that the sales mix was 50% laptops and 50% tablets. Compare the break-even point with that in part (1). Why is it so different? 3V2. 25% BSA 322 Fall, 2022 Chapter 20 Lab Handout PR 20-6A Contribution margin, break-even sales, cost~volume-profit chart, Obi. 2, 3, 4, 5 margin of safety, and operating leverage Wolsey Industries Inc. expects to maintain the same inventories at the end of ZOYS as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials ............................. $ 46 Direct labor ................................ m 40 Factory overhead ................... $200,000 20 Selling expenses: Sales salaries and commissions .............. 110,000 8 Advertising ................................. 40,000 ~v Travel ...................................... 12,000 -- Miscellaneous selling expense .............. 7,600 1 Administrative expenses: Office and officers'salaries ... 132,000 w- Supplies .................................... 10,000 4 Miscellaneous administrative expense ........ 13,400 _T Total ........................................... $525,000 3% it is expected that 21,875 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,000 units. instructions Prepare an estimated income statement for 20Y5. What is the expected contribution margin ratio? Determine the breakreven sales in units and dollars. Constmct a cost~volume-profit chart indicating the breakeven sales, What is the expected margin of safety in dollars and as a percentage of sales? P'V'H-'ENP-'l' Determine the operating leverage. NAME: Christian Schmidt Problem 20-1A Seymour Clothing Co. Fixed Variable Mixed Cost Cost Cost Cost A. X b. X C. X d. X e. X f. X 9. X h. X i. X X K. X X m. n. X O. p. q. r. S. t.NAME! Christian Schmidt Problem 20-2A Portmann Company 1. Fixed Variable Costs Costs Cost of Good Sold (100,000,000) (30%) (70%) 30,000,000 70,000,000 Selling Expenses (16,000,000) (25%)(75%) 4,000,000 12,000,000 Administrative Exp. (12,000,000) (50%) (50%) 6,000,000 6,000,000 Total 40,000,000 88,000,000 2. a. Unit Variable Cost ($) 88 ($88,000,000 / 1,000,000) b. Unit Contribution Margin ($) 100 ($188 Selling Price - $88 Variable Cost) 3. Break-Even Sales (Units): (Show Math) (Total Fixed Costs / Unit Contribution Margin) ($40,000,000 / 100) = 400000 4. Proposed Program Break-Even Sales (Units): (Show Math) {($40,000,000 + 5,000,000) / 100} = 450000 5. Sales in Units of Proposed Program to Yield $60,000,000 Income from Operations: (Show Math) 6. Schedule of Maximum Income from Operations with Expanded Plant: Sales ($188,000,000 + $11,280,000) 199,280,000 Less: Fixed Costs Variable Costs Income From Operations 7. Income or Loss from Operations with Expanded Plant and Current Level Sales:NAME: Christian Schmidt Problem 20-5A Tech Products Inc. 1. Unit Selling Price of M 1150 (Laptops $1,600 x 40%) + (Tablets $850 x 60%) Unit Variable Cost of M 530 (Laptops $800 x 40%) + (Tablets $350 x 60%) Unit Contribution Margin of M 620 Break-Even Sales (Units): ($2,498,600 Fixed Cost / $620 Unit Contribution Margin) 2,498,000 / 620 = 4030 2. Units of Sales of Laptops 4,030 Units x 40% = 1612 Units of Sales of Tablets 4,030 Units x 60% = 2418 3. Unit Selling Price of M (50% Mix) Unit Variable Cost of M(50% Mix) Unit Contribution Margin of M Break-Even Sales (Units): Why is the Break-Even so different with a 50% Sales Mix?NAME: Problem 20-6A Wolsey Industries Inc. Wolsey Industries Inc. Estimated Income Statement For the Year Ending December 31, 20Y3 Sales (21,875 x $ 160) $ 3,500,000 Cost of Goods Sold: Direct Materials - Variable: (21,875 x $46) $ 1,006,250 Direct Labor - Variable: (21,875 x $40) 875,000 Factory Overhead - Mixed: (21,875 x $20) + (200,000) 637,500 Cost of Goods Sold 2,518,750 Gross Profit 981,250 Operating Expenses: Selling Expenses: Sales Salaries & Commissions $ Advertising 40,000 Travel 12,000 Miscellaneous Selling Expenses Total Selling Expenses 52,000 Administrative Expenses: Office & Officers' Salaries $ 132,000 Supplies Misc. Administrative Expenses Total Administrative Expenses 132,000 Total Operating Expenses 184,000 Estimated Income From Operations Net Income: ($350,000)2. Expected Contribution Margin Ratio: (Show Math) 3. Break-Even Sales in Units: (Show Math) Break-Even Sales in Dollars: (Show Math) 5. Expected Margin of Safety: (Show Math) 6. Operating Leverage: (Show Math)