Sweet Wave Bakery (SWB) is a private corporate that was formed to provide cakes, breads and other sweets to commercial businesses and private individuals. It is located in Chicago, IL and manufactures the products in the home location and ships the product to retail outlets across the United States. It also has a division that provides onsite bakery installation and warranty services. SWBs mission is to provide high quality bakery products to satisfy their customers needs and to be recognized as a positive impact in the community. Because of its quality products and community involvement, the company has been growing quickly and is always looking for ways to expand their product line and continue to grow while still remaining profitable. Sweet Wave Bakery was founded by Sally Wasterton who is the company president and CEO. Sallys brother, Mark, has been working with Sally from the beginning developing new ideas and new recipes for the bakery. Mark is the Vice President of the company with Rolando Garras acting as the factory manager. Rolando is responsible for hiring line managers in the Chicago plant and Vice President Laila Jackson is responsible for the local divisions that install bakery equipment. SWB has a centralized human resources department that is managed by Pat Wilmington. The CFO of the organization, Rebecca Martinez, is in charge of the accounting and finance department. Rebecca has a small staff of CPAs working for her. The following has been pulled from the financial records of Sweet Wave Bakery for the month of November 20X6. Accounts Receivable $ 275,000 Advertising Expenses 54,000 Cash 260,000 DepreciationFactory Equipment 16,800 DepreciationOffice Equipment 2,400 Direct Labor 42,000 Factory Supplies Used 16,800 Factory Utilities 10,200 Finished Goods Inventory, November 30 68,800 Finished Goods Inventory, October 31 72,550 Indirect Labor 48,000 Office Supplies Expense 1,600 Other Administrative Expenses 72,000 Prepaid Expenses 41,250 Raw Materials Inventory, November 30 52,700 Raw Materials Inventory, October 31 38,000 Raw Materials Purchases 184,500 RentFactory Equipment 47,000 RepairsFactory Equipment 4,500 Salaries 325,000 Sales 1,350,000 Sales Commissions 40,500 Work In Process Inventory October 31 52,700 Work In Process Inventory, November 30 42,000 Part 1 assignment: Sweet Wave Bakery has a sales mix of cakes, bread, and pies as follows: Annual expected sales: Sale of cakes 460,000 units at $26.50 Sale of bread 1,480,000 units at $11.20 Sale of pies 60,000 units at $42.50 Variable manufacturing cost per unit: Cakes $13.96 Bread $ 7.95 Pies $9.75 Fixed manufacturing overhead cost (total) $760,000 Variable selling and administrative expenses per unit: Cakes $1.30 Bread $0.50 Pies $3.41 Fixed selling and administrative expenses (total) $1,600,000