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MANAMA COMPANY Functional Income Statement For the Month Ending May 31, 2020 Sales (30,000 units) $300,000 Cost of goods sold: Direct materials $30,000 Direct labor

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MANAMA COMPANY Functional Income Statement For the Month Ending May 31, 2020 Sales (30,000 units) $300,000 Cost of goods sold: Direct materials $30,000 Direct labor 22,500 Variable manufacturing overhead 18,750 Fixed factory overhead 20,000 91,250 Gross profit $208,750 Selling and administrative expenses: Variable $ 3,750 Fixed 10,000 13,750 Income before tax $195,000 Income Tax (25%) (48,750) Net income after tax 146,250 Calculate: AB 1- Manama's break-even sales in units and dollars. 2- Margin of safety in units and dollars. 3- If in addition to the fixed factory overhead, the company paid 0.5 per unit to the government additional tax. Compute the new Breakeven point. 4- The sales volume in dollars to earn an after tax income of $200,000

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