Whole Harvest Grains, Inc. produces and sells boxes of healthy cereal that are available in the breakfast section of most grocery stores; related information appears below.

Item	Total Cost
Strawberries and blueberries	$578,950
Costs for product packaging	125,000
Utilities for factory	17,000
Salaries for office staff	275,000
Wages for factory cleaning staff	48,000
Sugar	152,800
Rent of factory and equipment	550,000
Flour and other grains	406,000
Wages for production crew	260,000

Required:

A. Identify all costs above as either a product cost (specifically DM, DL or OH) or a period cost (PC).

B. If the company had produced 800,000 units but only sold 600,000 units what dollar amount would it report for cost of goods sold (rounded to the nearest dollar)?

C. Identify all costs as either a variable cost (VC) or a fixed cost (FC) then calculate the variable cost per unit (rounded to the nearest penny) assuming 800,00 units were produced and the total fixed costs. Prepare a CM model assuming all units were sold at $5 each.

Use the contribution margin model to answer each situation below, which is independent of the others and unless specified otherwise, uses the volume, price, VC per unit and FC data from part c.

D. What is the companys break-even point (in units) rounded to the nearest unit?

E. What is the projected net income if 500,000 units are sold?

F. The company is considering whether it should use organic berries in its product line. If so, its most recent costs for berries would have increased by $30,000. If the change is made, the company anticipates that unit sales will increase by 7 percent. What is the projected net income under this scenario?