Mauro Products distributes a single product, a woven basket whose selling price is $25 per unit and whose variable expense is $18 per unit. The company's monthly fixed expense is $18,200. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank's operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home Bank has submitted the following cost data for last year: Virtually all other costs of the branch-rent, depreciation, utilities, and so on-are organization-sustaining costs that cannot be meaningfully assigned to individual customer tronsactions such as depositing checks. In addition to the cost data above, the employees of the Westfield branch have been interviewed concerning how their time was distributed last year across the activities included in the activity-based costing study. The results of those interviews appear below: The manager of the Westfield branch of Security Home Bank has provided the following data concerning the transactions of the branch during the past year: Required: 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places.) Neptune Company has developed a small inflatable toy that it is anxious to introduce to its customers. The company's Marketing Department estimates that demand for the new toy will range between 16,000 units and 36,000 units per month. The new toy will sell for $5.00 per unit. Enough capacity exists in the company's plant to produce 19,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $3.00, and incremental fixed expenses associated with the toy would total $27,000 per month. Neptune has also identified an outside supplier who could produce the toy for a price of $3.75 per unit plus a fixed fee of $20,000 per month for any production volume up to 21,000 units. For a production volume between 21,001 and 41,000 units the fixed fee would increase to a total of $40,000 per month. Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier. (Do not round your intermediate calculations.) 2. How much profit will Neptune earn assuming: a. It produces and sells 19,000 units. b. It does not produce any units and instead outsources the production of 19,000 units to the outside supplier and then sells those units to its customers. 3. Caiculate the break-even point in unit sales assuming that Neptune plans to use all of its production capacity to produce the first 19,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units. 4. Assume that Neptune plans to use all of its production capacity to produce the first 19,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units. a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2 a? b. What total unit sales would Neptune need to achieve in order to attain a target profit of $13,500 per month? c. How much profit will Neptune earn if it sells 36,000 units per month? d. How much profit will Neptune earn if it sells 36,000 units per month and agrees to pay its marketing manager a bonus of 20 cents for each unit sold above the break-even point from requirement 3 ? Exercise 7-9 (Algo) Second-Stage Allocation to an Order [LO7-4] Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 140 direct labor-hours, 18 hours of product testing, and 4 sales calls. Required: What is the total overhead cost assigned to the order for heavy-duty trailer axles