Feathers Company makes 100,000 units of a particular product, out of a capacity os 150,000 units. At the production level of 100,000 units, the company has the following revenue and cost components:
Sales Price $14 per unit
Direct materials $3 per unit
Direct labor $2 per unit
Variable overhead $2 per unit
Fixed overhead $75,000
Variable Selling & administrative costs $1 per unit
Fixed selling and administrative costs $120,000
1. How many units must Feathers Company sell to reach breakeven?
2. Prepare a Cost-Volume-Profit chart showing breakeven
During the current period, Feathers Company sells 93,000 units out of the production batch of 100,000
3. Prepare an absorption-costing income statement.
4. Prepare a variable-costing income statement.