Wheels of Fortune is a bicycle manufacturing company based in Florida, USA. Summarized below are selling price, variable costs and expenses per unit and fixed costs (manufacturing overhead and selling & administrative expenses).

Selling Price $210

Variable Costs per unit Direct Materials $30

Direct Labor 50

Variable Manufacturing Overhead 25

Variable Selling & Administrative 5

Fixed Manufacturing Overhead $15,000

Fixed Selling & Administrative Expenses 5,000

Sales in units 250

Production in units 300

1. Net operating income under variable costing method.

2. Break-even point in units.

3. Break-even point in total sales ($)

4. Net operating income under absorption costing

5. Fixed manufacturing overhead in ending inventory