N P B D E F G H Vala Production/Sales Selling price per unit Direct Material Direct Labor Rent Depreciation 18,372 units 100 M JW Sports Supply Contributed Annual Income Statement For Year Ended December 31, 2021 30 Revenues 15 Cost of goods sold (COGS) 5,000 Gross Margin 4,000 Selling, general, and admin. expenses (SG&A) Electricity Other Manufacturing WN 2 Profit before tax 3 Selling 8,000 Sales Commission 10 Administrative Months 5,000 12 Electricity $ 2,000 Other manufactoring $ 16,000 JW Sports Supply Contributed Annual Income Statement For Year Ended December 31, 2021 Revenues Variable Costs Direct Material Direct Labor $ 1,837,200 Electricity Other Manufactoring Sales Commision Contribution Margin Fixed Expenses Rent Electricity Other Manufactoring Depreciation 551,160 275,580 36,744 55,116 183,720 Total 1,102,320 $ 734,880 60,000 24,000 192,000 48,000 Selling 96,000 Administrative 60,000 Total $ 480,000 Net Operating income $ 254,880 $ Fixed Expenses Contribution Margin/unit 480,000 40 8 0 = Break even in units 12000 R 7 The owners would like to devote themselves full-time to JW Sports Supplies, and have set a target profit of $300,000 per year ($25,000 per month) in order for that to be possible with their current lifestyles. Realizing from their projected income statement that their current predictions fall short of the $25,000 monthly amount, they want to evaluate the impact of alternative actions. Specifically, they want to evaluate each of the following factors, separately (in doing so, assume all other factors stay the same as projected in the original income statement): What price must the company set to achieve a profit of $25,000? Use goal seek What must the VC per unit be to achieve a profit of $25,000? C How many units must it sell to achieve a profit of $25,000? d What must total monthly fixed costs be to achieve a profit of $25,000? e Figure out a through d, and be prepared to actively insert your solutons into your data box in requirement 5 during your presentation. What do you recommend as the most realistic approach to achieving $300,000 in profits for the year? 8 Come up with 2 creative recommendations for James and William based on your analyses in any/all requirements.