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Cost accounting

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In this problem I need help calculating the dollar value of DimLok's current annual fixed costs, determinating the number of units that DimLok must sell in order to achieve both profit objectives considering all constraints. Also assuming that Don Barnes decides to sell 40,000 units at $200 per unit and 24,000 units at $180 per unit how to prepare a pro forma income statement for DimLok showing whether Don Barnes will achieve DimLok's profit objectives.

Note: The last line of the problem is incomplete and should say "... by RayLok's board of Directors".

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Solution Summary

Excel file contains calculations of annual fixed cost, sales required to earn targeted income and proforma income statement.

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