Koontz Company manufactures two models of industrial components Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz's controller prepared the segmented income statement that is shown below for the most recent year the allocated selling and administrative expenses to products based on sales dollars): tale 20.000 Advanced 10,000 Total 30,000 Number of units produced and sold 30300 Balas Coat of goods sold Grossargin Balling and administratives en $3,000,000 2,300,000 700.000 720,000 $ 20,000) 2,000,000 1,350,000 650,000 180.000 170,000 $5,000,000 .650.000 1.350.000 200.000 150,000 Net operating income (los) Direct laborers are paid $20 per hour Direct materials cost $10 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 labor hours. To enable further analysis, the controller gathered the following information Holding 187.500 Asbe and Pack 562.500 Total $1,350,000 20.000 Manufactur Overhead coat Direct labor hours Basie Advanced Machine sie 10.000 5.000 10.000 30.000 15.000 12.000 10,000 12.000 10,000 3. Koontz's production manager has suggested using activity-based costing Instead of either the plantwide or departmental approaches. To facilitate the necessary calculations, she assigned the company's total manufacturing overhead cost to five activity cost pools as follows: Activity Cost Pool Machining Assemble and pack Order processing Setups Other (unused capacity) Activity Measure Machine-hours in Molding Direct labor hours in Assemble and Pack Number of customer orders Setup hours Manufacturing Overhead $ 417,500 282,500 230,000 340,000 80,000 $1,350,000 She also determined that the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs include $150,000 for the Basic model and $200,000 for the Advanced model. The remainder of the company's selling and administrative costs are organization-sustaining in nature. 4. Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented Income statement that is adapted from Exhibit 7-8. (Hint: Organize all of the company's costs into three categories: variable expenses, traceable fixed 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. Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2A Reg 28 Reg 2C Reg 3A Reg 3B Reg 3C Reg 4 Reg 5 Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented income statement. (Round your intermediate calculations to 2 decimal places.) Koontz Company Income statement Advanced Total 5,000,000 Basic 3,000,000 Sales $ $ $ 2,000,000 800.000 Variable expenses Direct materials Direct labor Sales commissions 1,400,000 900,000 350,000 600,000 300.000 600,000 150,000 200.000 Total variable expenses Contribution margin 2.650,000 2.350,000 1.550 000 1.450 000 1.100.000 000 000 Traceable fixed ExOS Advertising 360,000 150.000 200.000 5. Using your contribution format segmented income statement from requirement 4, calculate the break-even point in dollar sales for the Advanced model. 0258.45 Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2A Reg 28 Reg 2 Req3A Reg 38 Req3C Regs 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) Break oven point in dollar s 2.181.7471 { Re 4