Green and Grow Corporation produces commercial fertilizer spreaders. The following information is available for Green and Grows anticipated annual volume of 400,000 units.

Per UnitTotal

Selling price per unit$300

Direct materials$32

Direct labor54

Variable manufacturing overhead72

Fixed manufacturing overhead$12,000,000

Variable selling and administrative expenses34

Fixed selling and administrative expenses7,200,000

Instructions

Compute each of the following:

1. Total cost per unit using variable costing

2. Total cost per unit using full costing

3. Contribution margin

4. Break event point in unit and dollar