6 Data Section: 8 Production costs: 9 Direct materials 10 Direct labor 11 Factory overhead 12 Selling expenses: 13 Sales salaries & Commissions 14 Advertising 15 Miscellaneous selling expense 16 General expenses: 17 Office salaries 18 Supplies 19 Miscellaneous general expense 20 23 24 Selling price per unit 25 Expected unit sales 26 28 Answer Section 29 30 Contribution margin per unit 31 Contribution margin ratio 32 Unit sales at break-even point 33 Dollar sales at break-even point 34 Expected net income 35 Fixed $225,000 97,000 47,500 16,200 92,000 12,300 15,000 $505,000 $16.00 120,000 Variable $2.30 4.70 3.00 0.75 0.25 $11.00 FORMULA 1 FORMULA2 FORMULA FORMULA 4 FORMULA 5