QUESTION 2 (30 marks) The 2020 pro-forma income statement for Grover Company is as follows. Glover Company Pro-Forma Income Statement For the Year Ended December 31, 2020 $170,000 $16.000 27,000 6,000 2.000 51.000 $119,000 Sales revenue 120,000 units). Cost of goods sold: Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost of goods sold Gross profil Selling expenses Variable Fixed Administrative expenses Variable Fixed.... Total selling and administrative expenses... Profit before tax Income tax 40% Net Income (Profit after tax) $20,000 45,000 8,000 32,000 S105.000 314,000 5,600 $8.400 Required: (Round all calculations to the nearest unit or dollar) a) What IS the cost to produce one unit of product? (2 marks) b) What is contribution margin per unit of product? (2 marks) c) What is the breakeven sale in unit? (Round up to the nearest unit) (2 marks) d) What is the company's margin of safety in units? (2 marks) e) What dollar level of sales is necessary to attain a target profit (profit before tax) of $25,000? (3 marks) f) What dollar level of sales is necessary to attain an after-tax profit of $15,000? (3 marks) Consider each of the following independent situations g) Compute the increase (decrease) in profit after tax if sales were to increase by 25%, fixed selling and administrative expenses decrease by 5% (4 marks) h) If the company increases fixed selling expenses by $10,000 and variable selling expenses by $2 per unit, unit sales are expected to increase by 10%. Calculate the company's after- tax profit if these changes were to occur, assuming the same tax rate of 40%). (4 marks) i) If the sales volume is 25,000 units, what is the selling price needed to achieve after-tax profit of $15,000? (4 marks) j) If direct material costs increase 10%, direct labor costs increase 15%, variable overhead costs increase 10% and fixed overhead increases by $10 000, how many units must be sold to ear an after-tax profit of $30,000? (Round your calculations to the next highest unit). (4 marks) an