At 50,000 units of production, the Grayson Company expects costs to be as follows:

	Direct materials	$140,000
	Direct labour	$100,000
	Depreciation of factory	$ 50,000
	Depreciation of production equipment	$ 40,000
	Production supervisor’s salary	$ 24,000
	Supplies	$ 5,000
	Indirect labour	$ 30,000
	Electricity	$ 15,000

Assume all cost items are either strictly fixed or strictly variable.

What would be the total cost per unit at 40,000 units of production?

Sales Extraordinaire sells one particular photo frame. It estimates that it can sell as many frames as it produces.

	Sales price per unit	$6.00
	Variable cost per unit	$3.00
	Fixed costs per annum	$9,000

The sale of 6,000 photo frames what would be result on profit ?

Tucker Company has the following product information:

	Sales price	$12 per unit
	Contribution margin ratio	40%
	Fixed costs	$45,000

What is the break-even point in sales dollars?