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1) Stackhome Company produces a product that sells for $1,400 per unit and variable production cost is $940 per unit and its monthly fixed cost is $40,000. They expect to sell 110 units this month. 1) calculate the expected profit for the month 2) calculate the contribution margin percent 4) what is the breakeven sales dollar amount 3) what is the breakeven amount of units they must sell 5) calculate the margin of safety dollars 6) If Stackhome wished to increase profits by $50,000 how many additional units must they sell 2) Activity Based Costing (ABC) The B\&R Company has two sales channels. The first is a mass production product while the second is a custom product. B\&R has the following budget information for the two products for the upcoming year \begin{tabular}{|c|c|c|c|c|} \hline \multirow{3}{*}{\begin{tabular}{l} Sales and Production Units \\ Sales Price per Unit \end{tabular}} & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{c} Mass Production \\ 2,500 \end{tabular}}} & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{c} Custom Product \\ 500 \end{tabular}}} \\ \hline & & & & \\ \hline & $ & 1,100 & $ & 1,500 \\ \hline \multicolumn{5}{|l|}{ Units Costs } \\ \hline Direct Material & $ & 500 & $ & 600 \\ \hline Direct Labor & $ & 200 & $ & 400 \\ \hline Overhead & & & & \\ \hline \end{tabular} You have been asked to establish activities and cost drivers for each department and have determined the following regarding the overhead pool: \begin{tabular}{|c|} \hline Cost Pool \\ \hline Building \\ Equipment \\ Materials Ordering \\ Quality Control \\ \hline Maintenance \& Security \\ \hline Total \end{tabular} \begin{tabular}{|lr|} \hline \multicolumn{2}{|c|}{ Amount } \\ \hline$ & 70,000 \\ \hline$ & 50,000 \\ $ & 60,000 \\ \hline$ & 45,000 \\ \hline & 30,000 \\ \hline$ & 255,000 \\ \hline \hline \end{tabular} Driver Activity Total Mass Production Custom Product \begin{tabular}{|l|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} a) Please calculate the cost per activity for each cost pool. b) Please calculate a P\&L for both product lines using the ABC method to allocate the $255,000 of Overheads. 3) Profit Maximization The owner of Premier Golf Links, Inc. is considering three alternative prices for 18 holes of golf. His estimate of price and quantity demanded for next year is : \begin{tabular}{|l|r|r|} \hline \multicolumn{2}{|c|}{ Price } & Quantity (\# of 18 hole rounds) \\ \hline$ & 65 & 18,000 \\ \hline$ & 75 & 15,000 \\ \hline$ & 90 & 10,500 \\ \hline \end{tabular} Yearly cost for the golf course are calculated to be $30 per round (variable) and $400,000 fixed cost. Which price will yield the largest profit for next year? 4) Cost Plus Pricing K co is considering the production of a new cell phone battery life extender. They would like to price the product at 35% about full cost. Assuming the variable cost per unit is $40 and the annual fixed cost is $295,000, what will be the full cost per unit and the resulting selling price if 1,400 units are produced and sold

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