P&S has a factory that produces cabinets for the RV and marine market. The company has other product lines. Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the following average costs The following information highlights P&S Manufacturings cost structure for 2021.

The materials include $5,000 for materials on a per job basis.

It requires 35 hours of labor on average for the cabinetry. The hourly rate is $15.

The sales price will be set at a markup of 85%.

The company estimates that it will have 70,000 direct labor hours in total for the cabinets.

It assumes 2,000 units are sold on average per year.

A breakdown of estimated yearly costs related to the cabinetry follows:

Salaries- Sales force $ 594,000

Salaries for factory laborers $ 390,500

Office Rent $ 159,500

Factory Rent $ 35,200

Office utilities and Misc office expenses(based on units sold) $ 17,600

Sales travel(based on units sold) $ 25,300

Insurance - office $ 15,400

Depreciation - office equipment $ 45,100

Depreciation for factory equipment $ 79,200

Advertising $ 38,500

Sales commissions(based on units sold) $ 59,400

Factory Property taxes $ 28,600

Maintenance for factory equipment $ 93,500

Hint: you will need to distinguish between product vs. period costs and variable vs fixed costs. Please do not forget all costs for this company(not just the ones listed above in the table).

1. Prepare three CVP Income Statements using the following yearly volumes: 1,050, 2,000 and 3,505. Keep in mind how variable and fixed costs behave. The traditional income statement from #5 should be about the same net income as the 2,000 units for the CVP format. In addition, Q1, should agree to the total fixed costs and per unit variable costs for these schedules. (see PowerPoint from chat the week of the project for format) a) Calculate Break-even in units and sales $ for the company b) Calculate units and sales $ if the company wants a profit of $25,000,000. c) Margin of safety in dollars for 2,000 units.