P10-8 Break-even analysis The production of a new product required Zion Manufacturing Co. to lease additional plant facilities. Based on studies, the following data have been made available: Estimated annual sales-24,000 units Amount Per Unit Estimated costs: $ 96,000 $4.00 Materials 14,400 .60 Direct labor.. 1.00 24,000 Factory overhead 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. 3. 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