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Required information The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $80 per unit. The following
Required information The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year. Fixed manufacturing overhead Pixed selling and administrative expenses $ $ 4 $800,000 $496,000 1. What is the company's break-even point in unit sales? Break even point 29.455 units Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $54. Data for last year's operations follow: 0 21,200 19,600 1,600 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 12 14 40 Pixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs $ 84,500 119,500 $204,000 3. What is the company's break-even point in terms of units sold? (Round your answer to the nearest whole number.) Break-even units sales 14,600 units Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Pixed manufacturing over head Fixed selling and administrative expense 366,000 170,400 During the year, the company produced 36,600 units and sold 28,400 units. The selling price of the company's product is $82 per unit. b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Absorption Costing Income Statement Sales $2,328,800 Cost of goods sold: Beginning inventory $ 0 Add: Cost of goods manufactured 2,598,600 Goods available for sale 2,598,600 Less: Ending inventory 582,200 2,016,400 Gross margin 312,400 Selling and administrative expenses 340,800 Operating income $ 28,400)
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