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DejaView Bookcase Company manufactures a bookcase that has widespread popularity. The company has a backlog of orders that is large enough to keep production going

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DejaView Bookcase Company manufactures a bookcase that has widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant's full capacity of 5,000 bookcases per year. The firm holds zero inventory. Annual financial data follows. Units produced Units sold..... ...5,000 Total Per Unit Revenue ........... -.....$1,750,000... $350.00 Less: Costs Wood and glass used in bookcases ......... -540,000... 108.00 Administrative office salaries ..... 150,000. 30.00 Factory supervisor salaries .....mum .100,000. 20.00 Sales commissions .=.4.254565458543 ..60,000. 12.00 Cutting and assembly machine depreciation.........135,000.... .27.00 Cutting and assembly labor ... ..90,000. 18,00 Advertising.... ..30,000. .....6.00 Factory rent .....=. 175,000... 35.00 Property taxes, factory ... .85.000.. .17.00 Net operating income ....... $385,000. $77.00 1. Compute the total variable cost per unit. 2. Dei View is preparing its traditional income statement. What amount will appear as total gross margin? 3. Assume that there is an unexpected recession that causes production and sales to drop to 3,000 bookcases per year. Compute the average total cost per unit. 4. Compute the net operating income when the number of units produced and sold is 3,000

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