Microsoft Corp. 

• February 2026 Costs:
  • Direct materials: $720,000
  • Direct labor: $520,000
  • Factory overheads: $480,000
  • Selling expenses: $290,000
  • Administrative expenses: $250,000
  • Units produced and sold: 56,000 units
  • Sales revenue: $2,800,000

Requirements:

1. Calculate the total manufacturing cost.
2. Compute the cost per unit.
3. Prepare an income statement.
4. Determine the net profit.