You've been provided with the following costs and relevant information for year 2022. 

The data is as follows;

a.     Cost of goods sold of $40 per unit

b.     Labor = $500/month - part-time employee hired to take care of packaging and shipping. The employee is paid $10 per hour and is expected to work 50 hours total per month.

c.      Advertising fees = $3,000

d.     Bank fees = $500

e.     Phone/internet = $250 per month

f.      Shipping = $5 per unit

g.     Utilities = $300 per month

h.     Office Supplies = $800

i.       Conference Exhibitor Fee = $3100

j.       Travel Expenses for Conference (e.g., airfare, meals, taxi) = $1100

 

Required;

1.Units that need to be sold for the firm to break even.

2.Classify costs (a to j) as either variable or fixed.

3.What is the importance of classifying costs as either variable or fixed.

4.A budgeted income statement for producing and selling 500 units at a selling price of $100 per unit. Income tax is at 30%.