Sunland Manufacturing produces basketballs used for indoor and outdoor games. The company has had significant troubles over the past few years, as the number of competitors in the basketball market has increased dramatically. Recently, the company was forced to cut back production in order to reduce its rising inventory level. The following is a list of costs for the company in 2022:

Variable costs per unit
Rubber		$2.75
Other materialsindirect		1.40
Ball makersdirect labour		5.60
Factory electricity usage		0.40
Factory water usage		0.15
Other labourindirect		0.26
Selling and administrative expenses		0.40
Fixed costs per year
Factory property taxes		$128,325
Factory sewer usage		53,500
Factory electricity usage		42,800
Selling and administrative expenses		88,810

Sunland Manufacturing had an ending inventory of 90,950 basketballs in 2021. For these units, the fixed manufacturing overhead cost was $4.00 per unit and variable manufacturing costs were $9.60 per unit. In 2022, the company produced 37,500 basketballs, sold 77,600 basketballs, and had an ending inventory of 50,850 basketballs. The basketballs sold for $19.00 each. Sunland uses the FIFO method.

Calculate Sunland manufacturing cost per unit under absorption costing. (Round per unit calculations and final answer to 2 decimal places, e.g. 15.25.)

		2021		2022
Manufacturing cost		$enter a dollar amount per unit rounded to 2 decimal places per unit		$enter a dollar amount per unit rounded to 2 decimal places per unit

Prepare an absorption-costing income statement for 2022.

SUNLANDMANUFACTURING Absorption-Costing Income Statement choose the accounting period December 31, 2022For the Month Ended December 31, 2022For the Year Ended December 31, 2022
Sales in units				enter a number of units
select an income statement item Beginning InventoryFixed selling and administrativeCost of goods soldVariable selling and administrative costsCost of goods available for saleGross marginCost of goods manufacturedOperating incomeSalesEnding inventory				$enter a dollar amount
select between addition and deduction AddLess: select an opening section name Variable selling and administrative costsGross marginSalesEnding inventoryCost of goods available for saleCost of goods manufacturedFixed selling and administrativeOperating incomeCost of goods soldBeginning Inventory
select an income statement item Fixed selling and administrativeEnding inventoryCost of goods manufacturedBeginning InventorySalesCost of goods soldVariable selling and administrative costsGross marginOperating incomeCost of goods available for sale		$enter a dollar amount
select an income statement item SalesCost of goods available for saleEnding inventoryFixed selling and administrativeCost of goods soldBeginning InventoryOperating incomeCost of goods manufacturedVariable selling and administrative costsGross margin		enter a dollar amount
select an income statement item Cost of goods soldCost of goods available for saleEnding inventorySalesVariable selling and administrative costsFixed selling and administrativeBeginning InventoryGross marginOperating incomeCost of goods manufactured		enter a subtotal of the two previous amounts
select an income statement item Operating incomeCost of goods available for saleBeginning InventoryCost of goods manufacturedFixed selling and administrativeVariable selling and administrative costsCost of goods soldEnding inventorySalesGross margin		enter a dollar amount
				enter a subtotal of the two previous amounts
select a summarizing line for the first part Cost of goods available for saleEnding inventoryGross marginBeginning InventoryFixed selling and administrativeCost of goods manufacturedSalesOperating incomeVariable selling and administrative costsCost of goods sold				enter a total amount for the first part
select between addition and deduction AddLess:
select an income statement item Ending inventoryGross marginOperating incomeCost of goods available for saleBeginning InventoryFixed selling and administrativeVariable selling and administrative costsCost of goods manufacturedCost of goods soldSales		enter a dollar amount
select an income statement item Operating incomeSalesFixed selling and administrativeBeginning InventoryCost of goods soldGross marginCost of goods available for saleCost of goods manufacturedEnding inventoryVariable selling and administrative costs		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for this statement Cost of goods manufacturedOperating incomeSalesCost of goods available for saleBeginning InventoryEnding inventoryCost of goods soldFixed selling and administrativeVariable selling and administrative costsGross margin				$enter a total amount for this statement

Sunland chief financial officer, Mr. Richard, is contemplating the benefits of using the absorption-costing and variable-costing approaches. He has asked you to perform a variety of tasks to help him analyze the differences between the two approaches: 1. Reconcile the differences between the income values of the two approaches.

Reconciliation of net income
Variable-costing net income		$enter a dollar amount
FMOH deferred in ending inventory		enter a dollar amount
FMOH released from beginning inventory		enter a dollar amount
Absorption-costing net income		$enter a total amount

2. Mr. Richard has heard that some basic managerial tasks can be better performed when variable costing is used. Calculate the break-even point in units for the company in 2022 using the variable-costing data. (Round answer to 0 decimal places, e.g. 5,275.)

Break-even point

enter the break-even point in units rounded to 0 decimal places

units