Required information The board of directors of the Cortez Beach Yacht Club $($CBYC$)$ is developing plans to acquire more equipment for lessons and rentals and to expand club facilities. The board plans to purchase about $$64,000$ of new equipment each year and wants to begin a fund to purchase a $$614,000$ piece of property for club expansion.

The club manager is concerned about the club's capability to purchase equipment and expand its facilities. One club member has agreed to help prepare the following financial statements and help the manager ascertain whether the plans are realistic. Additional information follows the financial statements.

$\backslash$table$[[\backslash$table$[[$CORTEZ BEACH YACHT CLUB$],[$Statement of Income $($Cash Basis$)],[$For the Year Ended October $31]],$Year $9,$Year $8],[$Cash revenues$],[$Annual membership fees,$$850,000,$$$614,000],[$Lesson and class fees,$486,200,374,000],[\backslash$table$[[$Miscellaneous$]],5,400,4,400],[$Total cash received,$$1,341,600,$$$992,400],[$Cash costs$],[$Manager$\text{'}$s salary and benefits,$$86,000,$$$86,000],[$Regular employees' wages and benefits,$394,000,394,000,3],[$Lesson and class employees' wages and benefits,$404,000,314,000,],[$Supplies$,34,800,33,800,],[$Utilities $($heat and light$),46,800,32,800],[$Mortgage interest,$49,000,54,800],[$Miscellaneous$,5,400,4,400,],[$Total cash costs,$$1,020,000,$$$919,800],[$Cash income,$$321,600,$$$72,600]]$ Additional Information

Other financial information as of October $31,$ year $9$:

a$.$ Cash in checking account, $$21,000.$

b$.$ Petty cash, $$1,300.$

c$.$ Outstanding mortgage balance, $$888,000,$

d$.$ Accounts payable for supplies and utilities unpaid as of October $31,$ year $9,$ and due in November, year $9,$ $$6,400.$

The club purchased $$64,000$ worth of sailing equipment during the current fiscal year $($ending October $31,$ year $9).$ Cash of $$34,000$

was paid on delivery, with the balance due on October $1,$ which had not been paid as of October $31,$ year $9.$

The club began operations in year $3$ in rental quarters. In October, year $5,$ it purchased its current property $($land and building$)$ for

$$1,452,000,$ paying $$268,000$ down and agreeing to pay $$74,000$ plus $5$ percent interest annually on the previously unpaid loan

balance each November $1,$ starting November $1,$ year $6.$

Membership rose $3$ percent during year $9,$ approximately the same annual rate of increase the club has experienced since it opened

and that is expected to continue in the futur

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Ferry Electronics produces a wide variety of video and audio systems for home entertainment. One of the Ferry plants $($Lakeview$)$ produces home theatre systems. The plant produces three models, Silver, Gold, and Platinum, which differ in the quality of the components and capability to "fill" the room with sound.

The financial team at Ferry is completing the planning for the coming quarter. Information on volumes and costs expected for the quarter follow:

Silver Gold Platinum Total

Units produced $2,0001,5005004,000$

Machine$-$hours $5902,1001,0503,740$

Direct labor$-$hours $6001,2007502,550$

Revenues $ $583,600$ $ $793,050$ $ $493,350$ $ $1,870,000$

Direct materials costs $310,000533,250303,0001,146,250$

Direct labor costs $9,60028,80025,35063,750$

Manufacturing overhead $561,000$

Operating Profit $ $99,000$

The team has been discussing two issues. First, there is disagreement about how best to allocate the manufacturing overhead among the products. The current cost accounting system allocates manufacturing overhead to products based on expected unit sales. $($Because Ferry carries no inventory, unit sales are equal to units produced.$)$ Second, there is a concern about a "softening" in the demand for these systems and the managers at Ferry want to get a better understanding of possible financial implications if demand should be weaker than expected.

The finance team decides that a two$-$stage system might improve the information available for management. They do an account analysis and determine that there appear to be two main drivers of overhead: revenue and direct costs. Based on the account analysis, the team splits the manufacturing overhead into two pools as follows:

Revenue$-$related overhead $ $176,341$

Direct cost$-$related overhead $384,659$

Total overhead $ $561,000$

d$.$ Compute total and per$-$unit profits by product line based on the expected $($not breakeven$)$ sales by product line using the two$-$stage cost allocation system developed by the finance team.

Note: Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round "Unit profit $($loss$)"$ answers to $2$ decimal places. Round your "Total profit $($loss$)"$ answers to nearest whole dollar. Check that everything is good and correct the regular employees wages and benefit that is $453100$ that is incorrect