The 2020 pro-forma income statement for Grover Company is as follows.

Glover Company

Pro-Forma Income Statement

For the Year Ended December 31, 2020

Sales revenue (20,000 units)....		$170,000
Cost of goods sold:
Direct material .	$16,000
Direct labor ..	27,000
Variable manufacturing overhead..	6,000
Fixed manufacturing overhead	2,000
Total cost of goods sold..		51,000
Gross profit..		$119,000
Selling expenses:
Variable	$20,000
Fixed..	45,000
Administrative expenses:
Variable	8,000
Fixed..	32,000
Total selling and administrative expenses..		$105,000
Profit before tax		$14,000
Income tax 40%		5,600
Net Income (Profit after tax)		$8,400

Required: (Round all calculations to the nearest unit or dollar)

a) What is the cost to produce one unit of product? (2 marks)

b) What is contribution margin per unit of product? (2 marks)

c) What is the breakeven sale in unit? (Round up to the nearest unit) (2 marks)

d) What is the companys margin of safety in units? (2 marks)

e) What dollar level of sales is necessary to attain a target profit (profit before tax) of $25,000? (3 marks)

f) What dollar level of sales is necessary to attain an after-tax profit of $15,000? (3 marks)

Consider each of the following independent situations

g) Compute the increase (decrease) in profit after tax if sales were to increase by 25%, fixed selling and administrative expenses decrease by 5% (4 marks)

h) If the company increases fixed selling expenses by $10,000 and variable selling expenses by $2 per unit, unit sales are expected to increase by 10%. Calculate the companys after-tax profit if these changes were to occur, assuming the same tax rate of 40%). (4 marks)

i) If the sales volume is 25,000 units, what is the selling price needed to achieve an after-tax profit of $15,000? (4 marks)

j) If direct material costs increase 10%, direct labor costs increase 15%, variable overhead costs increase 10% and fixed overhead increases by $10 000, how many units must be sold to earn an after-tax profit of $30,000? (Round your calculations to the next highest unit). (4 marks)