PROBLEM 2 Daiki Company, a manufacturer of helmets, has the following information for its most recent year of operations 2021 and is planning for 2022 operations. Selling price $50 per unit, current sales volume 7,800 units, Variable manufacturing costs of $25 per unit and Fixed costs of $200,000 per year. Consider the following independent situations. 10. Daiki wants to know the number of units to sell in order to break-even. 11. Daiki wants to know the break-even sales in total dollars. 12. To attain a target profit of $40,000, how many units have to be sold? 13. Management thinks that by increasing fixed costs in advertising per year by $20,000, it will have a corresponding 10% increase in sales. By how much will net operating income increase or decrease from its current performance? 14. Management is considering increasing the price by 10% and expects volume to be the same due to price sensitivity of customers. It also aims to decrease variable manufacturing costs by $3 by using cheaper materials. By how much will net operating income increase or decrease from its current performance? PROBLEM 3 Ushijima Company sells home testing kits for Covid19: Antigen Rapid Test (ART), RT-PCR, Auto-Immune Response (AIR). For its first year of operations 2020 show the following income statement summarized performance. Total 10.00 7.50 Sales Variable Manufacturing Costs Contribution Margin Fixed Costs Net Operating Income (Loss) ANTIGEN 200,000.00 12.50 150,000.00 4.38 50,000.00 RT PCR 500,000.00 30.00 175,000.00 15.00 325,000.00 15.00 AIR 300,000.00 150,000.00 150,000.00 2.50 8.13 1,000,000.00 475,000.00 525,000.00 530,000.00 (5,000.00) Required: 15. Management has asked you to compute its break-even point. *two decimal places. 16. At the break-even point, how many units of Antigen must be sold? Round off to the nearest unit. 17. At the break-even point, how many units of RTPCR must be sold? Round off to the nearest unit. 18. At the break-even point, how many units of AIR must be sold? Round off to the nearest unit. 19. For the year 2021, actual total sales of the products are as follows: Antigen $500,000; RT PCR $312,500; and AIR $360,000. How much is the Net Operating Income (Loss) for 2021 assuming no change in the company's cost and pricing? 20. What is the new weighted contribution margin ratio for 2021? *two decimal places