a. The total conversion cost for the month was:

b. The total prime cost was:

c. The total product cost was:

d. Total expenses:

2. The Old Towne Manufacturing Company produces the following three products:

			1-Jul-2020	31-Jul-2020
Work in process		19,000		20,000
Raw materials		24,000		29,000
Finished goods		55,000		30,000
Other data:
Direct labor cost		55,000
Factory overhead cost	82,000
Selling expenses		19,000
Raw materials purchases	58,000
Administrative expenses	42,000

	Saws	Knives	Measuring Tapes
Selling Price per unit	$40	$16	$50
Variable Cost per unit	28	12	30
Contribution per unit	12	4	20

Fixed Costs are $76,000 per year

50% of all sales in units are Saws, 30 percent are Knives, and 20 percent are Measuring Tapes

a. What is the breakeven point in total units? Round off to the nearest whole number

b. Number of saws that will be sold to breakeven?

c. Total sales in units to obtain a before-tax profit of $19,000? Round off to the nearest whole number.

Answer rating: 100% (QA)

Old Towne Manufacturing Company Cost Analysis and Breakeven Point 1 Cost Analysis a Total Conversion Cost Conversion cost includes direct labor and fa... View the full answer