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

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)