Shelves Company produces a set of office furniture consisting of a desk, a bookshelf and a chair, They produce 4,200 sets per year. This is the annual cost data at full capacity: 6,812,000/1000 = 812 per variable fixed adm.ex -2)651,000 426000 26500 Direct labor $ 90,000 Advertising $ 96,000 Factory supervision $ 74,000 Property taxes, administrative building $ 24,000 Sales commissions $ 56,000 Insurance, factory $ 5,000 Depreciation, administrative office equipments 2,000 Lease cost, factory equipment $ 12,000 Indirect materials, factory $ 21,000 Depreciation, factory building $107.000 Administrative office supplies (billing) $ 5,000 Administrative office salaries $106.000 Wood S432.000 Utilities, factory $ 47,000 Required (1point each): 1. Total variable and fixed production costs 1 2 Variable and fixed Selling and administrative expenses 4. Contribution margin per unit if selling price is $350 5. Break even point and margin of safety in units 6. Assume that production drops to 1.000 sets. How much would be the cost per unit using absorption costing? vaiable Admin Total fixed 651000 426000 5 22000+29980 = 812,600 493 Producerast 90,000 96,000/96,000 -24,000 56,00 5000 2000 1. Direct labor fixed per od pe DEUSCH Indirect 99000 Advertising factory supervision 74600 74,000 Property taxes ab. - 24,000 Sales commissions 56,000 Insurance, factory -5,000 Depreciaton, admin trchive office 2.000 Lease cost factory equipment 12,000 Indirect materiets factory-21,000 121,000 Deprecict on factory building 167,000 107,000 5000 Administrative office Supplies 5000 Adminstrative office salaries 10,000 copies 432000 432100 47000 unilities factory 47,000 226,000 225000 522000 290,000 12,000 wood 651000