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Please answer ASAP QUESTION 4 (30 MARKS) Shiloh i sto.oo?;eggsi; :Hl;faCtures and sel!s gadgets. The business earned net income of e foliows: n sales was

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QUESTION 4 (30 MARKS) Shiloh i sto.oo?;eggsi; :Hl;faCtures and sel!s gadgets. The business earned net income of e foliows: n sales was 6,000 units and data for variable cost per unit and total fixed Variable expenses per unit: Direct Material [l ] e e [ Variable Manufacturing Overhead _ Fixed expenses: Fixed Manufacturing Overhead Fixed Selling Costs $85,000 Fixed Administrative Costs Required: a) Compute the expected selling price per unit, using the equation method. (4 marks) b) Calculate Shiloh's break-even point in units and in sales dollars. (2 marks) (3 marks) ) Calculate the margin of safety in units and in sales dollars. prepare a contribution margin income statement for the ailing the components of total fixed costs and clearly (4 marks) d) Given the sales of 6,000 units, year ended December 31, 2016, det showing contribution and net income. Shiloh Enterprises profit objective for the period is to increase % in 2017. They expect per unit data and total fixed costs to Determine the number of units that must be sold to earn this (4 marks) e) The management of operating income by 24 remain the same in 2017. target operating profit. Is this a realistic goal? Asstime that as a result of reorganizing the production process, the management of Shiloh Enterprises was able to reduce direct material cost per unit by s2 due to a change in the supplier of the raw material used in the production process, but the sales units of 6,000 units is expected to decrease by 5%, coupled with an increase in total fixed costs of $149,400. What must the new selling price per unit be if the company wishes to meet the profit objective for 20177 (6 marks) 6,000 units, graph Shiloh's CVP relationships clearly showing the breakeven point, the sales revenue line, the fixed cost line, the total cost line, the operating profit area, the operating loss area and the margin of safety in units and sales dollars. [Use a scale of 2 cm to represent 1,000 units on the x-axis and 2cm to represent $100,000 on the y-axis]. (7 marks) g) Given the expected sales of -END OF QUESTION PADPER

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