Sheet11-Jan31-DecDirect Materials Inventory9001000work in prog inv11001200finished goods inv19002000beg wip inv1100mfg costsdir matbeg inv900purchases4400material avail.5300less ending inventory1000direct mat used4300other mfg costs137600Total mfg costs141900total cost wip143000less ending wip1200COG mfg141800Beg finished goods inv15600finished avail for sale157400ending finished goods inv2000cost of goods sold155400Differential costsOld MethodNew method%reddiff cost is 21.40.30.6budget increaseOriginal amtPercent increase21001.15241552001.15598020001.15230020001.15230022001.152530135001.15155253000375015001.218004500450015001500500050001550016550320001.1536800revenues1600000fixed cost437500var cost900000tix sold100000avg sell price16avg var cost per tix9avg cont margin per tix7break even pt62500minimum profit 43750minimum profit how many tix?68750break even with cont margfixed costs900000cont margin0.42250000sales dollars reqd to gen profit xx with required cont marginsales dollars reqd2000002750000break even margin of safetycharges40variable16fixed 3600150Margin of safety:CurrentaltDiffBuydir matdir labvar ovhtotal000