Consider the information given in problem 6-37 on pages 235 and 236 of the text (the MLM #8 problem). The questions below refer to modifications of that problem. The following four modifications are applicable to all questions: (i) the projected sales of Thingone and Thingtwo are to be increased by the last four digits of your student identification number (i.e., add the last four digits of your student identification number to unit sales)(ii) the variable overhead rate is set at $8 per direct labor hour, (iii) the fixed manufacturing overhead is budgeted at $8,336,000 and the fixed manufacturing overhead rate is not fixed, but is set equal to the quotient of budgeted fixed overhead divided by budgeted direct labor hours, and (iv) the units in beginning and ending finished goods inventories are assumed to be valued at the current unit production costs.

1. Suppose that the target ending inventory of Thingone is modified from 29,000 to 27,000 units, and the target ending inventory of Thingtwo is modified from 8,000 to 7,000 units. What would be Chens budgeted gross profit (or loss) for 2020? (The last 4 of my student Identification are 2042)

8-37 Revenue and production budgets. (CPA, adapted) The Chen Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2016, Chen's budget department gathered the following data to prepare budgets for 2017: 2017 Projected Sales Product Thingone Thingtwo Units 69,000 44,000 Price $160 $258 2017 Inventories in Units Product Thingone Thingtwo Expected Target January 1, 2017 December 31, 2017 24,000 29,000 7,000 8,000 The following direct materials are used in the two products: Direct Material Unit A pound B pound each Projected data for 2017 for direct materials are: Amount Used per Unit Thingone Thingtwo 6 7 4 5 0 3 Direct Material A B Anticipated Purchase Price $13 8 7 Expected Inventories January 1, 2017 36,000 lb. 31,000 lb 9,000 units Target Inventories December 31, 2017 38.000 lb. 34,000 lb. 12,000 units Projected direct manufacturing labor requirements and rates for 2017 are: Product Thingone Thingtwo Hours per Unit 4 5 Rate per Hour S13 18