The sales manager of DOT Enterprises is considering expanding sales by producing three different versions of its product. Each will be targeted by the marketing department to different income levels and will be produced from three different qualities of materials. After reviewing the sales forecasts, the sales department feels that 40% of units sold will be the original product, 35% will be new model #1 and the remainder will be new model #2. The following information has been assembled by the sales department and the production department Sales price (per unit) Material cost Direct labor Variable overhead Original Model #1 Model2 $50.00 20.00 10.00 7.50 $100.00 45.00 20.00 15.00 $70.00 0.00 15.00 11.25 The fixed costs associated with the manufacture of these three products are $175,000 per year Determine the number of units of each product that would be sold at the break-even point Super-Speed Electronics manufactures low-cost, consumer-grade computers. It sells these computers to various electronics retailers to market under store brand names. It manufactures two computers, the Lightning 2.0 and the Lightning 2.4, which differ in terms of speed, memory, and hard drive capacity. The following information is available: Direct materials Direct labor Variable overhead Fixed overhead Total cost per unit Selling price $ 90 60 30 180 $360 600 S 110 90 30 240 $470 780 Units produced and sold 6,000 3,000 The average wage rate is $30 per hour. The plant has a capacity of 32,000 direct labor-hours (2 points per question, some have multiple answers) Required: 1. A nationwide discount chain has approached Super-Speed with an offer to buy 2,000 Lightning 20 computers and 2,000 Lightning 2.4 computers if the unit prices are lowered to $350 and $4so a. If Super Speed accepts the offer, how many direct labor-hours will be required to produce the additional computers? b How much will the profit increase (or decrease) if Super-Speed accepts this proposal? All other prices will remain the same. 58