Thank you

Question 20 (5 points) Saved Momentum Bikes manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory) Variable production costs $85 per bike Fixed production costs $530,000 Variable selling & administrative costs $17 per bike Fixed selling & administrative costs $480,000 Selling price $195 per bike Production 21,200 bikes Sales 19,000 bikes Instructions a) Prepare a brief income statement using variable costing b) Calculate the amount to be reported for inventory in the year end variable-costing balance sheetProblem III The income statement for Roprin Company for 2019 appears below. Roprin COMPANY Income Statement For the Year Ended December 31, 2019 Sales (40,000 units) $1,000,000 Variable expenses....... 700.000 Contribution margin .. 300.000 Fixed expenses 330,000 Net income (loss). $ (30.000) Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers: 1. What was the company's break-even point in sales dollars in 2019? 2. How many additional units would the company have had to sell in 2019 in order to earn net income of $30,000? 3. If the company is able to reduce variable costs by $2.50 per unit in 2020 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $35,000? Solution Problem III Break-even point in sales dollars in 2019 Contribution Margin Ratio 1 $7.50/25= 30% Additional units would Roprin have had to sell in 2019 2. Additional units = 30%*30,000 = 9,000 units 3. Units will Roprin have to sell in order to earn a net income of $35,000 in 2020 2019 Variable cost per unit $ 25 Variable cost reduction 2.50 2020 Variable cost per unit Expected Contribution margin for 2020: Necessary Sales Units in order to earn a net income of $35,000 in 2020.Question 19 (5 points) ~ Sived Harris Timber Corporation uses a machine that removes the bark from cut timber. The machine is unreliable and results in a significant amount of downtime and excessive labour costs. The management is considering replacing the machine with a more efficient one which will minimize downtime and excessive labour costs. Data are presented below for the two machines: Old Machine New Machine Original purchase cost $340,000 $370,000 Accumulated depreciation 230,000 Estimated life 5 years 5 years It is estimated that the new machine will produce annual cost savings of $85,000. The old machine can be sold to a scrap dealer for $8,000. Both machines will have a salvage value of zero if operated for the remainder of their useful lives. Instructions Determine whether the company should purchase the new machine