Tom Tilman Company has the following budgeted information for 2020:

1. Using the given information, complete the chart:

	Best Case	Most Likely	Worst Case
Break Even Units
Break Even Sales Dollars
Margin of Safety Dollars
Margin of Safety %

1. For each scenario, calculate break even units, break even sales dollars, margin of safety dollars, and margin of safety percentage.

2. You are the consultant assigned to this case. Your client is considering buying Winter Mountain Company and has a goal that annual net income needs to be at least $4,500,000 per year. There is a 35% chance for the Best-Case scenario, a 45% chance for the Most Likely scenario, and a 20% chance for the Worst-Case scenario. Prepare a recommendation for your client: should the client buy the business or not and why?

$ $ $ Unit Selling Price Units to Sell Units Variable Material Costs per Unit Direct Labor Rate per Hour Direct Labor Time per Unit Variable Factory Overhead Costs per Unit Variable SG&A Costs per Unit Fixed Manufacturing Costs Fixed SG&A Costs Best Case 60.00 $ 600,000 1.9655 $ 15.00 $ 0.25 0.7950 $ 0.3625 $ 2,000,000 $ 9,954,000 $ Most Likely 50.00 $ 520,000 1.9757 $ 15.50 $ 0.25 0.8175 $ 0.3720 $ 2,100,000 $ 9,974,000 $ Worst Case 42.00 400,000 1.9885 16.00 0.25 0.8225 0.3830 2,300,000 9,994,000 $ $ $ $ $ Sales -Variable Material Cost -Variable Labor Costs -Variable Factory Overhead Costs = Manufacturing Contribution Margin -Variable SG&A =Contribution Margin -Fixed Factory Overhead - Fixed SG&A =Operating Profit -Taxes Best Case 36,000,000 $ 1,179,300 2,250,000 477,000 32,093,700 217,500 31,876,200 2,000,000 9,954,000 19,922,200 5,976,660 13,945,540 $ Most Likely 26,000,000 $ 1,027,364 2,015,000 425,100 22,532,536 193,440 22,339,096 2,100,000 9,974,000 10,265,096 3,079,529 7,185,567 $ Worst Case 16,800,000 795,400 1,600,000 329,000 14,075,600 153,200 13,922,400 2,300,000 9,994,000 1,628,400 488,520 1,139,880 =Net Income $