1. The following information is available for mixing department at Frozen Delight, an ice cream manufacturer, for June, 2018:

• Beginning work-in-process (2,500 gallons) is $3,100.
• Direct materials for 30,000 gallons that are started during the period cost $33,000.
• All direct materials enter the process at the beginning.
• Direct labor cost for the period is $5,250.
• Factory overhead cost for the period is $8,850.
• There are 1,500 gallons left 25% complete at the end of period.

1. What is the total sales revenue to make a target profit of $1,200? (2 points)

2. If the sales level is expected at $2,000 this period, what is the margin of safety?

1. In terms of sales dollars? (2 points)

2. In terms of sales units? (2 points)