The Tanoor company produces tip teir high rise flour. They sell it for $6.25/kg. The management estimates the following revenue and costs for year 2018

Sales$ 25,000,000Direct Materials$ 1.50 per unitDirect Labor$0.98 per unitVariable OH$0.85 per unitFixed OH$2,800,000Variable Selling Expenses$0.35per unitFixed Selling Expenses$5,500,000Variable Administrative Expenses$ 0.15 per unitFixed Administrative Expenses$350,000

Instructions:

a)Preparea CVP income statement for 2018 based on the management estimate.

b)Compute the company's break-even point in units in 2018?