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).

Problem 1 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 Fixed Manufacturing Overhead $15,000 Fixed Selling & Administrative Expenses 4,000 Sales in units 250 1 Production in units 300 Compute the following: 1. Net operating income under variable costing method. 2. Break-even point in units. 3. Break-even point in total sales ($) 4. Net operating income under absorption costing 5. Fixed manufacturing overhead in ending inventory.