The break-even quantity is 9,200 units The quantity to make a profit of $25,000 is 11,700 units The quantity to make a profit of $40,000 is 13,200 units. Also, to find standard costs, you need to MULTIPLY two amounts together.

1. Calculate the standard cost per unit for direct materials and standard rate per unit for direct labor. (The formulas are given above next to the Direct Materials and Direct Labor items. The standard costs that you calculate are the amounts you will use for your flexible budget for each of these costs).
2. Prepare a flexible production budget including Revenues, Total Variable Costs, Total Fixed Costs, Total Costs and Net Income, for the three levels of activity (number of units to break even, number of units to achieve a $25,000 profit, number of units to achieve a $40,000 profit).

The CEO is convinced of the Director of Sales ability to achieve a profit of $40,000 a month and reports those costs on the companys static budget. However, actual sales for the first month were 12,900 units.

The actual revenues and expenses for the month were:

VARIABLE COSTS (per unit)

Sales: $237,457

Direct Materials: $15,200 Direct Labor: $58,050

Indirect Materials: $1,305 Indirect Labor: $2,200 Utilities for Factory: $8,900 Supplies for Factory: $ 1,925 Variable Administrative Salaries $9,702

Variable Sales Commissions: $14,760

FIXED COSTS (per month) Factory Supervisor Salaries: $43,000 Factory Depreciation: $15,500

Property Taxes (Factory): $4,500 Insurance (Factory): $3,500 Maintenance (Factory): $1,860

Fixed Sales Salaries $10,000 Depreciation, Sales Equip. $12,250 Advertising $5,720

I need the procedure, because I already have the answer of the net income of 9,200 units is $0 and of 11,700 it is $25,000 and of 13,200 it is $40,000 and I am missing the net income of 12,900 and the procedure for the rest. thanks