case 5

The following information applies to the questions displayed below. O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Varlable costs per unit: Manufacturing: Direct materials Direct labor Varlable manufacturing overhead Varlable selling and administrative $27 S16 $5 S4 Fixed costs per year. Flxed manufacturing overhead Fixed sellilng and administrative expenses $570,000 $130,000 During its first year of operations, O'Brien produced 92,000 units and sold 72,000 units. During its second year of operations, it produced 85,000 units and sold 100,000 units. In its third year, O'Brien produced 88,000 units and sold 83,000 units. The selling price of the company's product is $71 per unit