Task $1$: Tales Company prepared the following income statement for $2021$:

TALES COMPANY

Income Statement for the year ended December $31,2021$

Sales

units$).$ $$800,000$

Variable

expenses.

$240,$

$000$

Contribution

ma

$,000$

Fixed expenses

$300,000$

Net income

$260,000$

What is the company's break$-$even point in units?

How many units would the company have had to sell to earn a target net income of $$250,000$ in $2022?$

If the company expects a $20\%$ increase in sales volume in $2022,$ which then results in a $20\%$ increase in total variable expenses, what would be the expected net income in $2022?$

There is an Option that an increase in the fixed expense by $$50,000$ would decrease variable expenses by $$1$ per unit. If the company expects to sell $70,000$ units in $2022,$ should the Director accept this Option? Why or why hot?

Task $2$: Choco Ple produces chocolate snacks. Choco Plc uses a traditional process costing system. The Baking Department has the following manufacturing cost data for March $2020$:

Production: Materials were added at the beginning of the process. Beginning WIP had $2\mathrm{.}200$ boxes of chocolate that were $30\%$ complete as to conversion