Q1A: data for X company:

Old machine new machine

Sales 20000 units@ $20 20000 units@$20

Direct material $6 $6

Direct labor 5 2

v.f.o.h 3 1 c

Rent of building 16000 16000

Rent of machine 28000 94000

Required: A- As a successful management accountant, advice management to choose the best alternative

B-IF the company produced 30000 units what happen about your advice

c- Calculate parity units

d- calculate break-even point for old machine if you know the target income $10000, and the tax 20%