Refer to the information in QS 19-16. The company sells its product for $50 per unit. Due to new regulations, the company must now incur $2 per unit of hazardous waste disposal costs and $8,500 per year of fixed hazardous waste disposal costs. Compute the company’s break-even point (in units), including hazardous waste disposal costs.

1. Compute the product cost per unit using absorption costing.
2. Determine the cost of ending finished goods inventory using absorption costing.
3. Determine the cost of goods sold using absorption costing.

Data From QS 19-16

Under absorption costing a company had the following per unit costs when 10,000 units were produced.

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Direct materials. Direct labor... Overhead costs for the year Variable overhead. Fixed overhead Units produced this year Units sold this year Ending finished goods Inventory in units $15 per unit $16 per unit $ 80,000 per year $160,000 per year 20,000 units 14,000 units 6,000 units