Activity$-$Based Costing. $($continued$)$Part IX$.$ Cost$-$Volume$-$Profit Analysis. $(15$ points$)$

Kirkland Company manufactures and sells detergents under various brand names. In March, the

firm produced and sold $3,000$ tons of detergent at an average selling price of $$5,000$ per ton of

detergent. The March income statement is given in the table below. Kirkland uses absorption

costing. For simplicity, assume all inventory balances on February $28,$ March $31,$ and April $30$

are zero.

The March income statement above incorporates the following information about variable costs.

All other costs are fixed costs.

Assume the following for April:

The April total fixed manufacturing costs will be at $80\%$ of the March total fixed

manufacturing costs.

The April average selling price will be $$5,500$ per ton of detergent.

The April variable cost per ton $($both manufacturing and non$-$manufacturing$)$ of detergent

will be the same as the March variable cost per ton of detergent.

The April total fixed non$-$manufacturing costs will be the same as the March total fixed

non$-$manufacturing costs.

Required:

How many tons of detergent would the company need to produce and sell in April to earn an

operating profit of three million dollars in April?

Computation for part $1$ has been completed for you:

Compute the per$-$unit manufacturing costs of each job under the prior job costing system.

Workspace for parts $2$ and $3$:

Compute the per$-$unit manufacturing costs of each job under the activity$-$based job costing

system.