Dreamland pillow company sells the "old softy" model for $20 each. one pillow requires two pounds of raw materials and one hour of direct labor to manufacture. raw material costs $3 per pound and direct production labor is paid $4 per hour. fixed supervisory costs are $2,000 per month and dreamland rents its factory on a five-year lease for $4,000 per month. all costs are considered costs of production. a. how many pillows must dreamland produce and sell each month to earn a monthly gross profit of $1,000? b. another firm has offered to produce "old softy" pillows and sell them to dreamland for s12 each. dreamland cannot avoid the factory lease payments but can avoid all labor costs if it does not produce these pillows. under these conditions, how many "old softy" pillows must dreamland sell to earn monthly gross profits of $1,000?

The chromosome manufacturing company produces two products, x and y. the company president, jean mutation, is concerned about the fierce competition in the market for product x. she notes that competitors are selling x for a price well below chromosome's price of $13.50. at the same time, she notes that competitors are pricing product y almost twice as high as chromosome's price of $12.50.ms. mutation has obtained the following data for a recent time period: product x product y number of units 11,000 3,000 direct materials cost per unit $3.23 $3.09 direct labor cost per unit $2.22 $2.10 direct labor hours 10,000 3,500 machine hours 2,100 1,800 inspection hours 80 100 purchase orders 10 30ms. mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. the overhead costs for this time period consisted of the following items: overhead cost item amount inspection costs $16,200 purchasing costs 8,000 machine costs 49,000 total $73,200using direct labor hours to allocate overhead costs determine the gross margin per unit for product x. choose the best answer from the list below.a. $1.93b. $3.12c. $7.38d. $2.43e. $1.73using activity-based costing for overhead allocation, determine the gross margin per unit for product y. choose best answer from list below.a. $10.07b. ($2.27)c. ($5.23)d. ($7.02)e. $7.02