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Homework help

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I need this by SAT the 28th by 6:00pm ET

Problem 1:

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The Peace Company has the following functional (traditional) income statement for the prior month.

Sales

($50 * 100,000 units)

$5,000,000

Cost of goods sold

Direct materials

$1,200,000

Direct labor

$950,000

Variable factory overhead

$600,000

Fixed factory overhead

$850,000

$3,600,000

Gross profit

$1,400,000

Selling and administrative expense

Variable

$250,000

Fixed

$120,000

$370,000

Operating income

$1,030,000

There were no beginning and ending inventories.

Required:

  1. Calculate the contribution margin per unit.
  2. Calculate the contribution margin ratio.
  3. What is the break-even point in units?
  4. What is the amount of sales in dollars needed to obtain a before-tax profit of $40,000?

Problem 2:

Suzy Manufacturing has estimated monthly sales of 18,000 units for $48 per unit. Variable costs include manufacturing costs of $27 and distribution costs of $9 per unit. Fixed costs are $60,000 per month.

Required

Determine each of the following values.

  1. Unit contribution margin
  2. Monthly break-even unit sales volume
  3. Before-tax monthly profit
  4. Monthly margin of safety in units

e.  Create a contribution margin-based income statement.

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