Use the information below to answer Questions 23 - 27.

ProKing Inc. produces and sells projectors and has a relevant range between 1,200 units and 2,100 units per month. Manufacturing overhead costs range from $450,000 to $540,000 at the low and high ends of the relevant range, respectively. All ProKing's products are customized, so it does not keep any inventory. ProKing's income tax rate is 25%. The following is ProKing's sales and costs information for the month of June:

Sales$1,200,000Sales units1,500Direct materials$135,000Direct labour$180,000Manufacturing Overhead?Variable Operating Expenses11.25% of SalesEarnings after taxes$112,500

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Question 22

8pts

Using the high-low method, calculate:

Please round your calculations to the nearest dollar.

(a) the fixed manufacturing overhead cost: $

(b) the unit variable manufacturing overhead cost: $

(c) the total manufacturing overhead cost for 1,500 units: $

(d) the total product cost for 1,500 units; $

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Question 23

4pts

Calculate:

Please round your calculations to 2 decimal points.

(a) the contribution margin:%

(b) the gross margin:%

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Question 24

6pts

Calculate:

(a) the total period costs (operating expenses): $

(b) the fixed period costs (operating expenses): $

(c) the total fixed costs (including both fixed product and fixed period cost): $

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Question 25

6pts

Based on the above answers, calculate

(a) the break-even point in units:units

(b) the degree of operating leverage:

(c) the margin of safety in units:units

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Question 26

6pts

Calculate:

(a) the sales dollars needed to earn income after taxes of $150,000: $

(b) sales dollars required to yield an after-tax profit of 10.5% of sales: $