Stereo Stereo Inc. (SSI) has manufactures only one model of Stereo, the Jack. It is known for its high class audio quality and surprising light weight! It comes in red, green, and purple. It is a very good product and was recently endorsed by Madonna.

This year, SSI expects to make and sell 18,600 Jacks. It is expected to be a very good year due to the latest fad of people listening to music at home, instead of attending concerts. Fixed administrative costs are expected to total $528,000 and fixed manufacturing costs are expected to total $325,000. Financial information relating to the product for this year is provided below.

Financial details per unit:

Selling price	$454
Variable selling cost	35
Variable overhead cost	38
Direct labour cost	87
Direct material cost	199

Required: Calculate SSIs expected margin of safety in units for this year.

Rounding Rules: For units, round up to the next whole unit.

Examples:

If your answer is 11,248.4689 units, enter 11249 with no ,

If your answer is 11,248.5175 units, enter 11249 with no ,

If your answer is 11,248.0010 units, enter 11249 with no ,

Your Answer:

Entry Rules:

Round your answer to the nearest whole number.

Examples:

If your answer is $24,500.47, enter 24500

If your answer is $24,500.51, enter 24501

If your answer is $24,500.00, enter 24500

Never enter $ or , when inputting numerical answers

QUESTION:

Selected data for Connor Inc. for the month of November 2020 are presented below:

Description	Amount
Work in process inventory, opening	$32,000
Work in process inventory, closing	$22,000
Raw materials inventory, opening	$18,000
Raw materials inventory, closing	$23,000
Factory utility costs	$32,000
Assembly line worker's salary	$125,000
Customer delivery costs	$40,000
Sales revenue	$926,000
Marketing and admin costs	$210,000
Depreciation on factory equipment	$61,000
Salary of salespeople	$256,000
Factory supervisor salary	$89,000
Direct material purchases	$61,000
Finished goods inventory, opening	$52,000
Finished goods inventory, closing	$69,000

Using the above information, develop a Schedule of Cost of Goods Manufactured and an Income Statement. Use the information to answer the following questions.

What is the total Direct Materials Used from the Schedule of Cost of Goods Manufactured?

What is the total Direct Labour from the Schedule of Cost of Goods Manufactured?

What is the total Manufacturing Overhead costs from the Schedule of Cost of Goods Manufactured?

What is the total Cost of Goods Manufactured from the Schedule of Cost of Goods Manufactured?

What is the total Cost of Goods Sold from the Income Statement?

What is the total Operating Income from the Income Statement?