1. Company has the following standard costs per unit for its one product (based on producing 10,000 units). The sales price is $500 per unit.:

Materials		100
Labor		50
Manufacturing OH:
Variable	25
Fixed	75
Total Manufacturing OH		100
Total standard cost		250

Overhead is applied to work in process based on direct labor dollars. Selling and admin expenses consist of $20/unit in variable cost, and fixed costs of $400,000 per year. During 2020, 10,500 units were produced, and 10,000 units were sold.

Direct Costing:

			units	PPU	total
Sales
Variable costs
	materials
	labor
	variable OH
	less ending inventory
	plus variable selling
Contribution Margin
Fixed Costs
	Manufacturing OH
	Selling and admin
Net income

3. For the Company (information above) compute the break-even point in units and in sales dollars:

Break even in units: ____________________________________________

Break even in dollars: ____________________________________________