The ABC Block Company produces sets of alphabet blocks

The ABC Block Company produces sets of alphabet blocks. For one particular style, variableproduction costs are $1.50 and variable selling costs are $2.00. There are identifiable fixedproduction costs of $35,000 and fixed selling costs of $25,000. At a selling price of $10 per set,ABC has been able to sell the entire 20,000 sets it can produce with available capacity.1. What is the total cost (manufacturing & sales) per unit?2. What is the quantity of sets of alphabet blocks that must be sold to break even?3. What is the projected profit at 20,000 units? Prepare an income statement to prove youranswer.

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