Select data about JackJoe, Inc. is provided below:

1. Construct a Variable and absorption income statement based on selling all of the units produced (5 points each, 10 total).2. Compute the breakeven selling price per unit (5 points). 3. If JackJoe only sold half of the production, which income statement would report higher net income? (5 points)

Direct materials per unit

$2

Direct labor per unit

$1

Overhead:

Variable per unit

$3

Fixed total

$240,000

SG&A

Variable per unit

$1.00

Fixed total

$40,000

Units produced

100,000

Sales price per unit

$10.00