$[$The following information applies to the questions displayed below.$]$

O$$Brien Company manufactures and sells one product. The following information pertains to each of the company$$s first three years of operations:

Variable cost Per unit:

Manufacturing:

Direct Materials $$27$

Direct Labor $$16$

Variable Manf Overhead $$4$

Variable Selling and Admin $$1$

Fixed cost per year:

Fixed Manf. Overhead $$520,000$

Fixed Selling and Admin Exp. $$110,000$

During its first year of operations, O$$Brien produced $93,000$ units and sold $71,000$ units. During its second year of operations, it produced $77,000$ units and sold $94,000$ units. In its third year, O$$Brien produced $86,000$ units and sold $81,000$ units. The selling price of the company$$s product is $$80$ per unit.

PROBLEMS:

$1$