The REDICO Company manufactures slippers that sell for $12.50 each pair. In 2019, the company made and sold 60,000 pair of slippers. . A pair of slippers equals one unit. The company had fixed manufacturing costs of $216,000. It also had fixed costs for administration of $79,525. The per-unit costs of each pair of slippers are as follows:

Direct Materials: $3.00

Direct Labor: $1.50

Variable Manufacturing Overhead: $0.40

Variable Selling Expenses: $1.10

Using the information above, perform a cost-volume-profit (CVP) analysis by completing the steps below. All CVP calculations should be completed in the REDICO Company Spreadsheet (attached).

1. Compute net income before tax:

   Cost Information From Instructions
   	Traditional	Travel
   Units Sold	60,000	3,000
   Selling Price	$12.50	$14.00
   Direct Material Cost Per Unit	$3.00	$3.10
   Direct Labor Cost Per Hour	$7.50	$8.00
   Variable MO	$0.40	$0.40
   Variable Selling Costs	$1.10	$1.10
   Labor Hours Per Unit	0.2	0.2
   Sales Orders	120	1
   Purchase Orders	50	3
   Production Runs	45	6
   Material Moves	86	10
   Machine Setups	130	6
   Machine Hours	525	32
   Inspections	200	10
   Shipments	60	3
   Activity Information from Instructions
   Activity	Activity Cost	Activity Cost Driver
   Order Processing	$35,000	Number of Sales Orders
   Purchasing	$36,000	Number of Purchase Orders
   Material Handing	$28,000	Material Moves
   Machine Setup	$14,000	Machine Setups
   Production	$99,000	Production Runs
   Assembly	$80,000	Machine Hours
   Inspecting	$11,000	Number of Inspections
   Shipping	$7,500	Number of Shipments
   Requirement 1
   Activity	Total Costs	Quantity of Cost Allocation Base	Overhead Allocation Rate
   Order Processing	$	X	$
   Purchasing	$	X	$
   Material Handing	$	X	$
   Machine Setup	$	X	$
   Production	$	X	$
   Assembly	$	X	$
   Inspecting	$	X	$
   Shipping	$	X	$