The XYZ Company provides you with the following data regarding operations in 20x9. ($) Sales Commission 13,000 Direct material 35,000 Depreciation on office facilities 12,000 Factory supervisory salaries (indirect) 15,000 Sales 120,000 Variable manufacturing overhead (indirect) 5,000 Direct labor 25,000 Requiremen 1. Construct the Decision Model of Income Statement by Absorption Approach. Requirement 2. Construct the Decision Model of Income Statement by contribution Approach. 3 4 5 6 7 8 9 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Requirement 3. Compute BEP in Sales ($) using the decision model you construct Break-even point in sales dollars (S) Requirement 4. Compute Target Sales for Target Profit After Tax XYX company sets up the Target Profit After Tax for $20,000 with the income tax rate of 40%. How much Sales should the company make to meet the Target Profit AFTER tax? Target Sales for Target Profit after tax ($) 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 Requirement 5. Why is the contribution approach better off calculating Sales In BEP than the absoption approachi The End of the Problem Set 1