Swaney Problem $-$ Review for test

The following data are available from the accounting recerds of Swasey Company for the mosth ended May $31,2019.$

$2$S$,000$ units were manufactered and sold during the acceunting period. The selling price was $580$ per unit. There were no beginning isventories and all units were completed $($no work in process$).$

$\backslash$table$[[$Costs$,$Tetal Cost,Nember of Units,,Writ Cent$],[$Manufactering Costs:$],[$Variable$],[$DM$,,,15,],[$DL$,,,15,],[$Var OH$,,,14,],[$Total Variable Manuf Cests,$$1100,000,25,400,,544],[$Fised Total Manufacturing Cests,$\frac{370\mathrm{.}099}{51470\mathrm{.}090},,,],[,,,,]]$

Selling and administrative expenses:

Variable $($$$3$ per ualt sold$)$

$575,000$

Fised

$232,000$

REQUIRED: Use the form supplied.

$($a$)$ Prepare a Contribution Margin $($abse called Variable Costiag$)$ income statement for May $2019.$ Show totals and per unit. Calculate CM Ratio.

$($b$)$ Frepare a Gross Frofit Margin $-$ GAAP $($alse called Traditional Cestiag$)$ ieceme statement for May $2019,$ Show totals and per asit.

$($e$)$ Calculate breakeves point for Swaney Company. Show work is CM format.

$($d$)$ Managemest weald like to ears a target profit of $5650,000.$ Stow work in CM format. How many units would they aeed to sell to reach the target profit?

$($e$)$ Management is in the middle of laber costract argotiations. If the direct labor union settles seat month with a $12\%$ salary iscrease, re$-$calculate the breakeves pelst.

The information below is for item e$.$

A few students have had questions.

I want to make sure everyone understands the calculations.

$\backslash$table$[[$Variable Costs,$12\%$ Increase,Adjusted Variable Costs$],[$DM$,15,1\mathrm{.}8,16\mathrm{.}8],[$DL$,15,$NA$,15],[$Var OH$,14,$NA$,14],[$Var S & A$,3,$NA$,3],[$Total Var,$47,,48\mathrm{.}8]]$