Question

The production of a new product required Venetian Manufacturing Co. to lease additional plant facilities. Based on studies, the following data have been made available: Estimated annual sales­24,000 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, 2013.
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.


$1.99
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  • CreatedMay 05, 2014
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