P10-8 Break-even analysis

Calendar X Modulo 7: ACCO 3420-30590NL X 7.1 Tarea X VitalSource Bookshelf: Principles X Homework Help - Q&A from Onl x + X C bookshelf.vitalsource.com/reader/books/9781305480520/pageid/590 Apps M Gmail YouTube & Canvas Mi Portal Course Hero N Netflix 2 Mi Banco Contratos o Outlook Parafrasist Convertir PDF a Wo. PUA Reading list Q AA RY ... P10-8 Break-even analysis The production of a new product required Zion Manufacturing Co. L01 to lease additional plant facilities. Based on studies, the following data have been made available: Estimated annual sales-24,000 LO4 units Amount Per Unit Estimated costs: Materials .... $ 96,000 $4.00 Direct labor. .... 14,400 .60 Factory overhead 24,000 1.00 Administrative expense ... 28,800 1.20 Total. .... . $163,200 $6.80 Selling expenses are expected to be 5% of sales, and net income is to amount to $2.00 per unit. Required: 1. Calculate the selling price per unit. (Hint: Let "X" equal the sell- ing price and express selling expense as a percentage of "X.") 2. Prepare an absorption costing income statement for the year ended December 31, 2016. Calculate the break-even point expressed in dollars and in units, assuming that administrative expense and factory over- head are all fixed but other costs are fully variable. LO4 Activate Windows Go to Settings to activate Windows.