QUESTION $2-25$ Marks

A$)$ If the fixed costs are $$10,000$ and the variable cost unit is $$10$ and the break$-$even is $100$ units, what is the selling price per unit? $(3$ marks$)$

B$)$ Falmouth Toy Company manufactures traditional wooden toy trucks. It has determined its variable cost$/$unit to be $$1\mathrm{.}50/$truck$.$ Fixed costs, however, are quite high because old equipment is used in the manufacturing process and costly packaging is needed to market the toy trucks. The fixed costs are estimated at $$11,000/$month$.$ The company sells their toy trucks at a price of $$7\mathrm{.}75$ each. How many toy trucks must be sold annually to break even? $(3$ marks$)$