Sales Volume 80,000 Units 12,800,000 Q1. Assume Altec Manufacturing Inc. has greatly exceeded the budget target Its CVP Operating Income Statement for 2022 is as follows: Sales Variable costs Cost of goods sold 8,812,020 Selling & administrative expenses 1.553.800 Total variable costs SP 160 per unit Variable Cost per unit 110.15 per unit 19.422 per unit 10 365,820 Contribution margin 2,434,180 Fixed costs Cost of goods sold Selling & administrative expenses Total Fixed costs 453,494 960,057 1,413,561 Operating income 1,020,629 Required: What is the seling price Altec needs to charge to earn the target operating income of $1,500,000? It expects to produce and sell 90,000 units in 2023, variable cost per unit will increase by 10% compared with 2022, fixed costs remain unchanged. Please solve the problem using excel Goal Seek Funcions. Solutions: Selling Price Variable cost 121.165 110% Cost of goods sold Selling & administrative expenses 21.365 per unit Total Variable costs CM Q 142.53 -142.53 per unit 90,000 Unit Altec Manufacturing Inc. Projected Income Statement Projected Income Statement Year Ending December 31, 2023 Sales Revenue Variable costs Contribution margin Fixed costs Net operating income Sales Volume 80,000 Units 22. Assume Altec Manufacturing Inc. has greatly exceeded the budget target. Its CVP Operating Income Statement for 2022 is as follows: Sales Variable costs Cost of goods sold 8,812,020 Selling & administrative expenses 1,553,800 Total variable costs SP 12,800,000 160 por unit Variable Cost per unit 110.15 per unit 19.422 per unit 10,365,820 Contribution margin 2,434,180 Fixed costs Cost of goods sold Selling & administrative expenses Total Fixed costs 453,494 960,057 1.413,551 Operating incomo 1,020,629 Required: At what level of unit sales would Altec be indifferent compared with Q 12 In other words, at what level of unit sales would Altec earn the same target operating income of $1,500,0007 Assume the CEO expects to acquire a new equipment which would employ an auto Assume the selling price is sill $175 per unit. Under this new cost structure plan, variable cost will reduce by 15%, and fixed cost will increased by 40%. Please solve the problem using excel Goal Seek Funcions Solutions: Selling Price 175 Variable cost 85% Cost of goods sold Seling & administrative expenses Total Variable costs CM 93.628 16.509 per unit 110.137 84.883 per unit Unit Sales Revenue Variable costs Contribution margin Fixed COBIS Net operating income Sales Volume 80,000 Units d Altec earn the same target operating income of $1,500,000? Assume the CEO expects to acquire a new equipment which would employ an automation system that intergrates the production process, and it would significantly reduce labour costs. xed cost will increased by 40% Q3. Assume Altec Manufacturing Inc. has greatly exceeded the budget target. Its CVP Operating Income Statement for 2022 is as follows: Sales Sales Volume 80,000 Units Variable costs Cost of goods sold Selling & administrative expenses Total variable costs 8,812,020 1,553,800 SP 12,800,000 160 per unit Variable Cost per unit 110.15 per unit 19.422 per unit 10.365,820 Contribution margin 2,434,180 Fixed costs Cost of goods sold Selling & administrative expenses Total Fixed costs 453,494 960,057 1,413,551 Operating income 1,020,629 Required: At what level of unit sales and selling price would Altec earn the same target operating income of $2,500,000? Assume the selling price should be between $175 and $200, and the level of unit sales can not be more than 90,000 due to the constrained resources. Variable cost per unit and fixed cost remained unchanged. Please solve the problem using excel Solver Funcions Solutions: Selling Price Variable cost Cost of goods sold Selling & administrative expenses Total Variable costs CM 110.15 per unit 19.422 per unit 129.573 per unit - 129.573 per unit Sales Revenue Variable costs Contribution margin Fixed costs Net operating income Q4. Altec Manufacturing Inc. is planing to produce and sell two new products: AS 106 and BS 107. The resources(in kg and hours) for producing each type of productc are as follows: AS 106 BS 107 Per-unit resource requirements 2 4 5 8 9 Plastic Production Assembly 1 Available 15,000 55,000 84,000 kg hours hours Required: Compute the optimal numbem of products of each type that Altec Manufacturing Inc. should make and sell to maximize operating income using Excel Solver Functions. Solutions: Altec Manufacturing Inc. BS107 AS106 Number to make Unit Contribution Margir 165 Total Contribution Margin 195 Used Resources Plastic Production Assembly Per-unit resource requirements 2 4 5 8 9 Available 15,000 55,000 84,000 kg hours hours