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Part A: (6 marks) Ahlia Corporation incurred the following costs while manufacturing its product. Materials used in product $ 120,000 Advertising expense $45,000 Depreciation on

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Part A: (6 marks) Ahlia Corporation incurred the following costs while manufacturing its product. Materials used in product $ 120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used I 23,000 50,000 Salaries paid to salesclerks Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Instructions Compute cost of goods manufactured. Part B: (8 marks) Ahlia Co. has a unit selling price of $6.5, variable cost per unit $4.5, and fixed costs of $10,000. Instructions: 1. What is the breakeven revenue? (2 marks) 2. If budgeted sales are 8,500 units, what is the margin of safety in units? What is the margin of safety as a %? What does this mean? (4 marks) 3. What is the sales volume (in units) required to make a profit of $20,000? (2 marks) Part A: (6 marks) Ahlia Corporation incurred the following costs while manufacturing its product. Materials used in product $ 120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 I Factory supplies used Salaries paid to salesclerks 23,000 50,000 Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Instructions Compute cost of goods manufactured. Part B: (8 marks) Ahlia Co, has a unit selling price of $6.5, variable cost per unit $4.5, and fixed costs of $10,000 Instructions: 1. What is the breakeven revenue? (2 marks) 2. If budgeted sales are 8,500 units, what is the margin of safety in units? What is the margin of safety as a %? What does this mean? (4 marks) 3. What is the sales volume (in units) required to make a profit of $20,000? (2 marks)

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