Projecting Profit and Break-Even Data.

Aclient has recently leased manufacturing facilities for production of anew product. Based on studies made by his staff, the following data have been made available to you:

Estimated annual sales -.. sasseetat eneeee. . 24,000 units Estimated costs Amount Per Unit 1E LS ENR age ae Ne Pe ge $ 96,000 $ 4.00 DiNvectUla0Ol se eesnake toe ah 14,400 .60 Qwverlieddi 225 Scheeere eS 24,000 1.00 Administrative expense ........... 28,800 1.20 Total $ 163,200 $ 6.80 Selling expenses are expected to be 15 percent of sales and profit to be $1.02 per unit.

Required:

a. Compute the selling price per unit.

b. Project an income statement for the year. -

c. Compute a break-even point expressed in dollars and in units, assuming that overhead and administration expenses are fixed but that other costs are fully variable.