Use the following to answer numbers 13 and 14 The Anderson Company has recently purchased a plant to manufacture a new product. The following data pertain to the new operation: Estimated annual sales 3,500 units at $20 Estimated costs: Direct materials....... Direct labor........... Factory overhead (all fixed). Selling Expenses. ******** Administrative expenses 13- The break-even point in dollars is: a. $77,000 b. $78,000 c. $79,000 $6.00/unit $1.00/unit ..... $12,000 per year 30% of sales $16,000 per year d. $80,000 14- What is the selling price if the profit per unit is $2.04? a. $24.24 b. $24.34 c. $26.24 d. $26.34

Use the following to answer numbers 13 and 14 The Anderson Company has recently purchased a plant to manufacture a new product. The following data pertain to the new operation: Estimated annual sales 3,500 units at $20 Estimated costs: Direct materials....... Direct labor........... Factory overhead (all fixed). Selling Expenses. ******** Administrative expenses 13- The break-even point in dollars is: a. $77,000 b. $78,000 c. $79,000 $6.00/unit $1.00/unit ..... $12,000 per year 30% of sales $16,000 per year d. $80,000 14- What is the selling price if the profit per unit is $2.04? a. $24.24 b. $24.34 c. $26.24 d. $26.34

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Solve only part d. Reconcile the variable costing and absorption costing income figures for each year.
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