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Breakeven Point and Operating Income You are given the following information: Full Ton Company Financial Projection for Product USA For the Year Ended December 31,

Breakeven Point and Operating Income

You are given the following information:

Full Ton Company

Financial Projection for Product USA

For the Year Ended December 31, 20X2

Sales (100 units at $100 a unit)...............................................$10,000

Manufacturing cost of good sold

Direct Labor...............................$1,500

Direct Materials Used................$1,400

Variable Factory Overhead........$1,000

Fixed Factory Overhead............$500

Total Manufacturing cost of goods sold.................................$4,400

Gross Profit...........................................................................$5,600

Selling Expenses:

Variable..................................$600

Fixed......................................$1,000

Administrative Expenses:

Variable..................................$500

Fixed......................................$1,000

Total Selling and Administrative expenses............................$3,100

Operating Income..................................................................$2,500

Required:

1. How many units of Product USA would have to be sold to break even?

2. What would be the operating income be if sales increase by 25%?

3. What would be the dollar sales at the breakeven point if fixed factory overhead increases by $1,700?

A detailed workthrough on how to solve each requirement would be super helpful; not sure how to get started on them. Thanks!

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