Hard Inc. manufactures a single product. Assume the following data for the year just completed:

Fixed costs in total:

Selling and Admin................... $ 60,000

Production............................... $ 82,500

Variable cost per unit:

Selling and Admin................. $ 5

Production............................. $ 8 There were no units in inventory at the beginning of the year. During the year 30,000 units were produced and 25,000 units were sold. Each unit sells for $ 35.

Question 1. What is the unit product cost using Absorption costing

Question 2 What is the unit product cost using Variable costing?

Question 3: What is the companys operating income using variable costing?

Question 4 What is the companys operating income using absorption costing?

Question 5 Reconcile absorption and variable costing net operating incomes and explain why the two amounts differ.

Question 6: Compute the break even point in dollar sales

Question 7: Compute the break even poin in unit sales

Question 8: If the targeted net profit is $ 500,000, how many units must the company sell?

Question 9: Compute the companys margin of Safety

Question 10: Compute the degree of operating leverage (DOL) using total sales of 875,000

Question 11: Use the DOL you computed in Question 10 to answer this question

If sales would increase by 10%, net operating income would increase by how much?