First part.

In planning its operations for 2011 on the basis of a sales forecast of 6,000,000 ASF Inc. prepared the following estimated data Costs and Expenses

Variable Fixed

Direct Material 1,600,000

Labor 1,400,000

Factory overhead 600,000 900,000

Selling expenses 240,000360,000

Administrative expenses60,000140,000

Required:

a.What would be the amount of sales at the breakeven point?

2,250,000

4,000,000

3,500,000

5,300,000

Second part.

HASF Corporation has fixed costs of 1,000,000 variable costs of 50 per units and a contribution margin ratio of 40% and no of units sold 20,000

Required:

a.Compute the following

Units sales price and unit's contribution margin for the above product

The sales volume in units required for company to earn an operating income of 100,000

The $ sales volume required for company to earn an operating income of 300,000

Third part.

For each of the three independent situations below computes the missing amounts

S/No. Sales Variable costs Contribution margin per unit Fixed costs Operating income Units sold

1 ? 120,000 20 ? 25,000 4,000

2 180,000 ? ? 45,000 30,000 5,000

3 600,000 ? 30 150,000 90,000 ?