Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $990. Selected data for the companys operations last year follow:

Units in beginning inventory	0
Units produced	240
Units sold	225
Units in ending inventory	15
Variable costs per unit:
Direct materials	$120
Direct labor	$ 330
Variable manufacturing overhead	$ 50
Variable selling and administrative	$ 25
Fixed costs:
Fixed manufacturing overhead	$ 72,000
Fixed selling and administrative	$ 27,000

The absorption costing income statement prepared by the companys accountant for last year appears below:

Sales	$ 222,750
Cost of goods sold	180,000
Gross margin	42,750
Selling and administrative expense	32,625
Net operating income	$ 10,125

1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.

3. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?

4. Prepare an income statement for last year using variable costing.

5-a. Compute the companywide break-even point in dollar sales.

5-b. Compute the break-even point for the Chicago office and for the Minneapolis office.

5-c. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points?

6. Assume that the company uses absorption costing.

a. Calculate the unit product cost.

b. Prepare an income statement for May.

7. Assume that the company uses variable costing.

a. Calculate the unit product cost.

b. Prepare a contribution format income statement for May.