A client has recently leased facilities for manufacturing a new product. Based on studies made by his staff, the following data have been made available to you:

Selling expenses are expected to be 15 percent of sales, and profit is expected to amount to \(\$ 1.02\) per unit.
Required:
(1) Compute the selling price per unit.
(2) Project a profit and loss statement for the year.
(3) Compute a breakeven point expressed in dollars and in units, assuming that overhead and administrative expenses are fixed but that other costs are fully variable.

Transcribed Image Text:

Estimated annual sales.......24,000 units Estimated costs:.............. Amount Material $ 96,000 Direct labor....... 14,400 Overhead......... 24,000 Administrative expense 28,800 Total $163.200