1. Redo Alpine, InC.'s 2016 Income Statement in the contribution format. Show both a total column and a per unit column on your statement.
2. In an effort to make 2017 profitable, Micah Patdu, the president is considering two proposals prepared by member of her staff:
a, b (in photo)
Prepare two contribution income statements, one showing what profits would be under Jon Michael's proposal and one showing what profits would be under Mary Wilkinson's proposal. On each statement, include both total and per unit columns. (do not show unit data for fixed costs)
3. Refer to this original data. Micah Patdu, the president thinks it would be unwise to change the selling price. Instead, she wants to use less costly materials in manufacturing units of product, thereby reducing costs by $1.43 per unit. How many units would have to be sold during 2017 to earn a target profit of $59000 for the year?
4.Refer to the original data. ALpine, Inc.'s advertising agency thinks that the problem lies in inadequate promotion. By how much can advertising be increased and still allow the company to earn a target return of 5 percent on sales of 60000 units?
5. Refer to the original data. The company has been approached by an overseas distributor who wants to purchase 15000 units on a special price basis. There would be no sales commission on these units. However, shipping costs would increase by 80 percent, and variable administrative costs would be reduced by 50 percent. Alpine, Inc.' would have to pay a foreign import duty of $3500 on behalf of the overseas distributor in order to get the goods into the country. Given these data, what unit price would have to be quoted on the 15000 units by Alpine, Inc., to allow the company to earn a profit of $18000 in the year 2016 on total operations? Regular business would not be disturbed by this special order.
(all detail and question are in the file photos.)