The REDICO Company manufactures slippers that sell for $12.50 each pair. In 2019, the company made and sold 60,000 pair of slippers. . A pair of slippers equals one unit. The company had fixed manufacturing costs of $216,000. It also had fixed costs for administration of $79,525. The per-unit costs of each pair of slippers are as follows:

Direct Materials: $3.00

Direct Labor: $1.50

Variable Manufacturing Overhead: $0.40

Variable Selling Expenses: $1.10

Using the information above, perform a cost-volume-profit (CVP) analysis by completing the steps below. All CVP calculations should be completed in the REDICO Company Spreadsheet (attached).

3. Calculate the break-even point in units and dollars of revenue.

Requirement 3
Activity-Based Costing
	Traditional	Travel	Total
Revenues	$	$	$
Direct Materials	$	$	$
Direct Labor	$	$	$
Variable Overhead	$	$	$
Variable Selling Costs	$	$	$
Order Processing Costs	$	$	$
Purchasing Costs	$	$	$
Material Handing Costs	$	$	$
Machine Setup Costs	$	$	$
Production Costs	$	$	$
Assembly Costs	$	$	$
Inspecting Costs	$	$	$
Shipping Costs	$	$	$
Total Costs	$	$	$
Operating Income	$	$	$
Operating Income %	%	%
Per Unit Operating Income	$	$