please help with question 7 im so confused

7. Calculate the break-even point in units (calculate the number of units of each product required), and the number of units of both products that must be sold to earn an operating income of $300,000. Use 2022 budgeted information - refer to section D bullet point 2 and your results from requirement 5 . \begin{tabular}{lll} \hline A. Budget information assembled at the start of 202 \\ & Entry-level Bats & Pro-series Bats \\ Budgeted production & 60,000 & 10,000 \\ Number of bats per batch & 100 & 20 \\ Setup labor hours per batch & 5 hours & 8 hours \\ Feet of lumber per bat & 4 feet & 4 feet \\ Direct labor hours per bat & 1.2hr & 2hrs \end{tabular} Manufacturing Operations Overhead Costs Variable costs Supplies \begin{tabular}{lc} Indirect manuf. Labor & $25,000 \\ Power & 90,000 \\ Maintenance & 21,000 \\ Fixed costs & 85,000 \\ Depreciation & $221,000 \\ Supervision & 40,000 \\ Power & 100,000 \\ Maintenance & 82,000 \\ & 60,000 \\ \hline \end{tabular} Machine Setup Overhead Costs Variable costs Supplies \begin{tabular}{ll} Indirect manuf. Labor & 85,000 \\ Power & 60,000$195,000 \\ Fixed costs & $50,000 \\ \hline \end{tabular} Fixed costs Depreciation 85,000 25,000 40,000 $150,000 B. Actual information for 2021 that can be traced directly to each product: C. Additionally, the Bat division had the following actual costs in 2021 that were not directly traced to either product: Actual Manufacturing Overhead Costs - 2021 D. Based on the information you have gathered you also make the following assumptions: - Because of past financial trouble in the division, all expenses must be paid in cash. No sales are made on account (all sales are cash sales). - Information for the 2022 budget is as follows: - The budgeted unit input quantities for materials used in 2021 will also be used in the 2022 budget. - For the entry-level bat the budgeted unit input quantities for labor and MOH (direct manufacturing labor-hours and machine setup labor hours) used in 2021 will also be used in the 2022 budget - For the pro-series bat the budgeted unit input quantity for direct manufacturing labor will be 2.4 hours/unit. The budgeted unit input quantity for setup labor hours used in 2021 will also be used in the 2022 budget The cost of Ash and Maple are budgeted to increase by 15% in 2022 over 2021 actual costs. Budgeted labor rates in 2022 are expected to increase by 5% over actual rates in 2021 . Calculate 2022 budgeted variable moh rates and total fixed moh from 2021 actual monthly cost and activity data. Use Regression Analysis to determine estimates for variable and monthly fixed costs. Convert monthly estimates of fixed costs into annual costs. - Assume non-cash MOH item amounts remain unchanged from budgeted 2021 data. - Production and sales forecasts are within the relevant range. - Budgeted variable period costs per unit and fixed costs in total for 2022 are assumed to be the same as actual period costs in 2021. . A6% increase in selling price for 2022 is expected for both the entry-level and the pro- - Production and sales forecasts are within the relevant range. - Budgeted variable period costs per unit and fixed costs in total for 2022 are assumed to be the same as actual period costs in 2021 . A 6% increase in selling price for 2022 is expected for both the entry-level and the proseries bats. - Normal costing is used. - There are two cost drivers for manufacturing overhead costs - direct manufacturing labor-hours and setup labor-hours. - Direct manufacturing labor-hours is the cost driver for the variable portion of manufacturing operations overhead. Direct manufacturing laborhours is also used to allocate the fixed portion of manufacturing operations overhead. - Setup labor-hours is the cost driver for the variable portion of machine setup overhead. Setup laborhours is also used to allocate the fixed portion of machine setup overhead. - Projected sales for the entry-level Bat are 54,000 in 2022,51,000 in 2023, and 48,000 in 2024. - Projected sales for the pro-series Bat are 10,800 in 2022,11,000 in 2023, and 12,000 in 2024. - Sales commission is paid as a rate per bat sold. -2022 input cost and quantity standards for direct materials, direct manufacturing labor and manufacturing overhead are the same as 2022 budgeted input costs and quantities. - You require an ending inventory of entry-level Bats of 10% of next year's total sales needs. Pro-series bats are made to order, and no inventory of finished goods is planned. - You require an ending raw material inventory of 20% of next year's production needs (for both product lines). - Assume a FIFO cost flow - Assume no WIP inventory. . Your beginning cash balance is $200,000 for 2022 . the same as actual period costs in 2021 . A 6% increase in selling price for 2022 is expected for both the entry-level and the proseries bats. - Normal costing is used. - There are two cost drivers for manufacturing overhead costs - direct manufacturing labor-hours and setup labor-hours. - Direct manufacturing labor-hours is the cost driver for the variable portion of manufacturing operations overhead. Direct manufacturing laborhours is also used to allocate the fixed portion of manufacturing operations overhead. - Setup labor-hours is the cost driver for the variable portion of machine setup overhead. Setup laborhours is also used to allocate the fixed portion of machine setup overhead. - Projected sales for the entry-level Bat are 54,000 in 2022,51,000 in 2023, and 48,000 in 2024. - Projected sales for the pro-series Bat are 10,800 in 2022,11,000 in 2023, and 12,000 in 2024. - Sales commission is paid as a rate per bat sold. - 2022 input cost and quantity standards for direct materials, direct manufacturing labor and manufacturing overhead are the same as 2022 budgeted input costs and quantities. - You require an ending inventory of entry-level Bats of 10% of next year's total sales needs. Pro-series bats are made to order, and no inventory of finished goods is planned. - You require an ending raw material inventory of 20% of next year's production needs (for both product lines). - Assume a FIFO cost flow - Assume no WIP inventory. - Your beginning cash balance is $200,000 for 2022. The company requires a minimum cash balance of $100,000. 7. Calculate the break-even point in units (calculate the number of units of each product required), and the number of units of both products that must be sold to earn an operating income of $300,000. Use 2022 budgeted information - refer to section D bullet point 2 and your results from requirement 5 . \begin{tabular}{lll} \hline A. Budget information assembled at the start of 202 \\ & Entry-level Bats & Pro-series Bats \\ Budgeted production & 60,000 & 10,000 \\ Number of bats per batch & 100 & 20 \\ Setup labor hours per batch & 5 hours & 8 hours \\ Feet of lumber per bat & 4 feet & 4 feet \\ Direct labor hours per bat & 1.2hr & 2hrs \end{tabular} Manufacturing Operations Overhead Costs Variable costs Supplies \begin{tabular}{lc} Indirect manuf. Labor & $25,000 \\ Power & 90,000 \\ Maintenance & 21,000 \\ Fixed costs & 85,000 \\ Depreciation & $221,000 \\ Supervision & 40,000 \\ Power & 100,000 \\ Maintenance & 82,000 \\ & 60,000 \\ \hline \end{tabular} Machine Setup Overhead Costs Variable costs Supplies \begin{tabular}{ll} Indirect manuf. Labor & 85,000 \\ Power & 60,000$195,000 \\ Fixed costs & $50,000 \\ \hline \end{tabular} Fixed costs Depreciation 85,000 25,000 40,000 $150,000 B. Actual information for 2021 that can be traced directly to each product: C. Additionally, the Bat division had the following actual costs in 2021 that were not directly traced to either product: Actual Manufacturing Overhead Costs - 2021 D. Based on the information you have gathered you also make the following assumptions: - Because of past financial trouble in the division, all expenses must be paid in cash. No sales are made on account (all sales are cash sales). - Information for the 2022 budget is as follows: - The budgeted unit input quantities for materials used in 2021 will also be used in the 2022 budget. - For the entry-level bat the budgeted unit input quantities for labor and MOH (direct manufacturing labor-hours and machine setup labor hours) used in 2021 will also be used in the 2022 budget - For the pro-series bat the budgeted unit input quantity for direct manufacturing labor will be 2.4 hours/unit. The budgeted unit input quantity for setup labor hours used in 2021 will also be used in the 2022 budget The cost of Ash and Maple are budgeted to increase by 15% in 2022 over 2021 actual costs. Budgeted labor rates in 2022 are expected to increase by 5% over actual rates in 2021 . Calculate 2022 budgeted variable moh rates and total fixed moh from 2021 actual monthly cost and activity data. Use Regression Analysis to determine estimates for variable and monthly fixed costs. Convert monthly estimates of fixed costs into annual costs. - Assume non-cash MOH item amounts remain unchanged from budgeted 2021 data. - Production and sales forecasts are within the relevant range. - Budgeted variable period costs per unit and fixed costs in total for 2022 are assumed to be the same as actual period costs in 2021. . A6% increase in selling price for 2022 is expected for both the entry-level and the pro- - Production and sales forecasts are within the relevant range. - Budgeted variable period costs per unit and fixed costs in total for 2022 are assumed to be the same as actual period costs in 2021 . A 6% increase in selling price for 2022 is expected for both the entry-level and the proseries bats. - Normal costing is used. - There are two cost drivers for manufacturing overhead costs - direct manufacturing labor-hours and setup labor-hours. - Direct manufacturing labor-hours is the cost driver for the variable portion of manufacturing operations overhead. Direct manufacturing laborhours is also used to allocate the fixed portion of manufacturing operations overhead. - Setup labor-hours is the cost driver for the variable portion of machine setup overhead. Setup laborhours is also used to allocate the fixed portion of machine setup overhead. - Projected sales for the entry-level Bat are 54,000 in 2022,51,000 in 2023, and 48,000 in 2024. - Projected sales for the pro-series Bat are 10,800 in 2022,11,000 in 2023, and 12,000 in 2024. - Sales commission is paid as a rate per bat sold. -2022 input cost and quantity standards for direct materials, direct manufacturing labor and manufacturing overhead are the same as 2022 budgeted input costs and quantities. - You require an ending inventory of entry-level Bats of 10% of next year's total sales needs. Pro-series bats are made to order, and no inventory of finished goods is planned. - You require an ending raw material inventory of 20% of next year's production needs (for both product lines). - Assume a FIFO cost flow - Assume no WIP inventory. . Your beginning cash balance is $200,000 for 2022 . the same as actual period costs in 2021 . A 6% increase in selling price for 2022 is expected for both the entry-level and the proseries bats. - Normal costing is used. - There are two cost drivers for manufacturing overhead costs - direct manufacturing labor-hours and setup labor-hours. - Direct manufacturing labor-hours is the cost driver for the variable portion of manufacturing operations overhead. Direct manufacturing laborhours is also used to allocate the fixed portion of manufacturing operations overhead. - Setup labor-hours is the cost driver for the variable portion of machine setup overhead. Setup laborhours is also used to allocate the fixed portion of machine setup overhead. - Projected sales for the entry-level Bat are 54,000 in 2022,51,000 in 2023, and 48,000 in 2024. - Projected sales for the pro-series Bat are 10,800 in 2022,11,000 in 2023, and 12,000 in 2024. - Sales commission is paid as a rate per bat sold. - 2022 input cost and quantity standards for direct materials, direct manufacturing labor and manufacturing overhead are the same as 2022 budgeted input costs and quantities. - You require an ending inventory of entry-level Bats of 10% of next year's total sales needs. Pro-series bats are made to order, and no inventory of finished goods is planned. - You require an ending raw material inventory of 20% of next year's production needs (for both product lines). - Assume a FIFO cost flow - Assume no WIP inventory. - Your beginning cash balance is $200,000 for 2022. The company requires a minimum cash balance of $100,000