Units produced 9,000 Units sold 7,000 Sales $ 100,000 Variable manufacturing costs are $ 4 per unit. Fixed manufacturing overhead totals $ 18,000 for the year. The fixed manufacturing overhead was applied at a rate of $ 2 per unit. Variable selling and administrative expenses were $ 1 per unit sold. Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements.( Points: 30) 6.( TCO I)( Ignore income taxes in this problem.) Simpson Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery. The machinery will cost $ 700,000, is Required: Part A: What is the net present value of this investment opportunity? Part B: Based on your answer to( a) above, should Simpson go ahead with the new conditioning shampoo?( Points: 30) PART B: Simpson should not go ahead and purchase the shampoo machine since the NPV is negative. 7.( TCO A) The following data( in thousands of dollars) have been taken from the accounting records of Karmana Corporation for the just-completed year. 8.( TCO F) Matuseski Corporation is preparing its cash budget for October. The budgeted beginning cash balance is $ 54,000. Budgeted cash receipts total $ 127,000 and budgeted cash disbursements total $ 99,000. The desired ending cash balance is $ 100,000. The company can borrow up to $ 150,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company ' s cash budget for October in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.( Points: 25) 9.( TCO F) Bella Lugosi Holdings, Inc.( BLH), has collected the following operating information for its current month ' s activity. Using this information, prepare a flexible budget analysis to determine how well BLH performed in terms of cost control.