The following budgeted profit statement has been prepared using absorption costing principles.

A company manufactures and sells a single product which has the following cost and selling price structure:

P/Unit                      P/Unit

Selling price                120

Direct Material              22

Direct Labour               36

Variable Overhead       14

Fixed Overhead           12

                                      84

Net Profit                       36

The fixed overhead absorption rate is based on the normal capacity of 2,000 units per month.

Assume that the same amount is spent each month on fixed overheads.

Budgeted sales for next month are 2,200 units.

You are required to calculate:

a. The breakeven point, in sales units per month.

b. The margin of safety for the next month.

c. The budgeted profit for the next month.

d. The sales required to achieve a profit of P96,000.

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Using the tax software, complete the tax retum, including Form 1040 and all appropriate forms, schedules, and worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNS) or Employer ldentification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice. Interview Notes Kendall and Siena are maried and fle a joint retum. • Siena is an ermployee and received a Form W-2. Kendall is a self-employed driver for Dalicious Delivaries. • Kendall and Siena had health insurance subsidized by Siena's employer. They paid $3,600 pre-tax in premiuma for the year. Kendall provided a statement from the food delivery service that indicated the amount of mileage driven and fees paid for the year. These fees are considered ordinary and necessary for the food delinery business: - 7,200 mles driven whio delivering food Insulated box rental $300 Vehicle safety inspection (required by Delicious Deliveries) $50 GPS device fee: $120 Kendal's record keeping application shows he also drove 4,125 milies between delv eries and 4,200 miles driven between his home and his first and last delivery point of the day. Kendall has a separate car for personal use. He bought and started using his second car for business on September 1, 2020. • Kendall also kept receipts for the folowing out-of-pocket expenses $100 on tols $120 for car washes $48 for parking tickets $76 for Personal Protective Equipment (PPE) used during deliveries $150 for snacks and lunches Kendall consumed while working Kendall provided the Form 1099-NEC and Form 1099-K that he received from Delicious Deliveries • Kendal also received $300 in cash tps that were not reported alsewher Kendall won $10.000 on a scratch off lottery ticket He has $3.000 im losing tickets Siena's brother Quincy moved in with them in December 2020. He's a full-time student working on his PhD, He works part-time and earned $3.800 n 2021. Kendal and Siena pay more than half of Quincy's support. Quincy paid $5.000 in elgible educa tonal expenses with the proceeds from a student loan Quincy recelved a Form 1008-T hom Yuma Colege, EIN 37-700XX0X showing $5.000 in Box 1 and having boxes 8 and 9 checked Kandail and Siena receved the third Economic impact Payment EIP3 in the amount of $2.000 in 2021. Quincy recetived his oan EP 3of S1,400 in 2021 Kendall, Siena, and Quincy are U.S. citrens have valid Social Secunty umbers, and ved in the Unted Stales all year 15. Which of the following statements is true: OA. Kendall can add the $3,600 they paid for health insurance premiums to his self-employment expenses on Schedule C. B. Kendall can claim the $3,600 they paid for health insurance premiums as a self-employed health insurance deduction on Schedule 1. OC. Kendall can claim his portion of the health insurance premiums, $1,800, as a self-employed health insurance deduction on Schedule 1. OD. Kendall can add his portion of the health insurance premiums, $1,800, to his self-employment expenses on Schedule C. OE. Kendall is not eligible for a self-employed health insurance deduction. Using the tax software, complete the tax retum, including Form 1040 and all appropriate forms, schedules, and worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNS) or Employer ldentification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice. Interview Notes Kendall and Siena are maried and fle a joint retum. • Siena is an ermployee and received a Form W-2. Kendall is a self-employed driver for Dalicious Delivaries. • Kendall and Siena had health insurance subsidized by Siena's employer. They paid $3,600 pre-tax in premiuma for the year. Kendall provided a statement from the food delivery service that indicated the amount of mileage driven and fees paid for the year. These fees are considered ordinary and necessary for the food delinery business: - 7,200 mles driven whio delivering food Insulated box rental $300 Vehicle safety inspection (required by Delicious Deliveries) $50 GPS device fee: $120 Kendal's record keeping application shows he also drove 4,125 milies between delv eries and 4,200 miles driven between his home and his first and last delivery point of the day. Kendall has a separate car for personal use. He bought and started using his second car for business on September 1, 2020. • Kendall also kept receipts for the folowing out-of-pocket expenses $100 on tols $120 for car washes $48 for parking tickets $76 for Personal Protective Equipment (PPE) used during deliveries $150 for snacks and lunches Kendall consumed while working Kendall provided the Form 1099-NEC and Form 1099-K that he received from Delicious Deliveries • Kendal also received $300 in cash tps that were not reported alsewher Kendall won $10.000 on a scratch off lottery ticket He has $3.000 im losing tickets Siena's brother Quincy moved in with them in December 2020. He's a full-time student working on his PhD, He works part-time and earned $3.800 n 2021. Kendal and Siena pay more than half of Quincy's support. Quincy paid $5.000 in elgible educa tonal expenses with the proceeds from a student loan Quincy recelved a Form 1008-T hom Yuma Colege, EIN 37-700XX0X showing $5.000 in Box 1 and having boxes 8 and 9 checked Kandail and Siena receved the third Economic impact Payment EIP3 in the amount of $2.000 in 2021. Quincy recetived his oan EP 3of S1,400 in 2021 Kendall, Siena, and Quincy are U.S. citrens have valid Social Secunty umbers, and ved in the Unted Stales all year 15. Which of the following statements is true: OA. Kendall can add the $3,600 they paid for health insurance premiums to his self-employment expenses on Schedule C. B. Kendall can claim the $3,600 they paid for health insurance premiums as a self-employed health insurance deduction on Schedule 1. OC. Kendall can claim his portion of the health insurance premiums, $1,800, as a self-employed health insurance deduction on Schedule 1. OD. Kendall can add his portion of the health insurance premiums, $1,800, to his self-employment expenses on Schedule C. OE. Kendall is not eligible for a self-employed health insurance deduction.

Answer rating: 100% (QA)

aThe breakeven point for this company is 1667 units per month This means that in order for the company to make a profit they must sell at least 1667 u... View the full answer