The production of a new product required Mirage Manufacturing Company to lease additional plant facilities. Based on studies, the following data have been made available: Estimated annual sales'24,000 units

Selling expenses are expected to be 5% of sales, and net income is to amount to $2.00 per unit.
Required:
1. Calculate the selling price per unit.
2. Prepare an absorption costing income statement for the year ended December 31, 2011.
3. Calculate the break-even point expressed in dollars and in units, assuming that administrative expense and factory overhead are all fixed but other costs are fullyvariable.

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Amount Per Unit Estimated costs s 96,000 14,400 24,000 28,800 $163,200 $4.00 0.60 1.00 1.20 Total