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Company Y gave the following information to its management accounting department to make a cost...

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Accounting

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Company Y gave the following information to its management accounting department to make a cost profit volume analysis about the company Sales In units Sales Variable manufacturing overhead in units Unit variable cost for overhead Fixed Cost [factoryl per unit Units produced Production Capacity Selling fixed cost per unit Prepaid insurance cost for factory Variable cost [Selling) per unit Supplies 5.000 Seco S25 $40 2,800 300 $27 $10 3700- 3500 5500 units $8.00 $1500 $ 5.00 $2500 REQUIRED 1. Calculate CM per unit; CMR 2. Determine the breakeven point in units and $ 3. Calculate margin of safety in $ & %. 4. The sales manager believes that the company could increase sales by 700 800 units if advertisement increased by $7500 and variable cost per unit for the sales increase will be $2.00. Should the company increase advertising expenses? $3.00 5. Determine sales revenue in units and $ necessary to generate after-tax profit of $15,000 6. Determine the sales revenue in units and $ necessary if the company wants to base its target profit on before tax profit. The after tax profit is $28000 $250 and tax rate is 12% 15.1

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