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  1. business
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  3. flip had sales of $10,000(100 units at $100 per).

Flip had sales of $10,000(100 units at $100 per). Manufacturing costs consisted of direct labor...

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Accounting

Flip had sales of $10,000(100 units at $100 per). Manufacturing costs consisted of direct labor $1500, direct materials $1400, variable factory overhead$1000, and fixed factory overhead $500. The company did not maintain any inventories, so total cost of goods sold was $4400. Selling expenses totaled $1600 ($600 variable and $1000 fixed), and administrative expenses totaled $1500 ($500 variable and $1000 fixed). Operating income was $2500. Round all answers to nearest dollar or whole number.

a. What is the breakeven point in sales dollars and in units if the fixed factory overhead increased by $1700?

b. What is the breakeven point in sales dollars and in units if the costs remain as originally projected?

c. What would be the operating income if sales units increased by 25%?

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