Question 1:

Hunter Co., projections for the month of June 2021 is as follows:

Information	Per unit	Per unit
Selling price		150
Direct Material	20
Direct Labor	36
Variable overhead	16
Fixed overhead	10	(80)
Profit per unit		70

Fixed overhead per unit rate is based on normal capacity of 2,000 units per month & the Budgeted sales for July are 2,000 units.

Required:

1- Compute the break-even point in Units and Dollars. (10marks)

2- How many units must be sold to earn a profit of $90,000? Prove your answer (10 marks)

3- Calculate the Margin of safety (units) (5 marks)

4- Calculate the profit for month of July if the budgeted sales are 2,200 units (5 marks)