Financial management

Company ABC produces a single product and has the following expenses as a projection for the period:

Factory general supervision: $ 15,000.00

Factory equipment depreciation: $6,000.00 Factory shed rent: $3,000.00

General administration of the company: $ 10,000.00 Direct Materials:

4.00$/unit Direct labor: $2.50/unit

Electricity consumed in production: $0.90/unit Sales

commission: $0.85/unit

Shipping to deliver sold products: $0.15/unit It is requested:

1. Calculate the Product Price to get an 8% Margin.

2. Calculate the amount of sales needed to break even

3. Make the Income Statement applying Absorption and Variable Costing, considering production of 1,000 units and sales of 850 units for the period