Answer:
Results are below.
Explanation:
<u>First, we need to calculate the variable cost per unit:</u>
Variable cost per unit= Materials + Labor + Plant supervision + Selling and administrative
Variable cost per unit= 18 + 15 + 8 + 9
Variable cost per unit= $50
<u>Now, the fixed cos</u>t:
Fixed costs= Selling and administrative + Production
Fixed costs= 47,620 + 142,860
Fixed costs= $190,480
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 190,480 / (70 -50)
Break-even point in units= 9,524
<u>Finally, the expected sales:</u>
expected sales= 23,810*70
expected sales= $1,666,700
