Computing a break-even point. The Lewiston Company manufactures a product that sells for $124 per unit. The variable manufacturing costs are $60 per unit; the variable selling and administrative expenses are $20 per unit. The fixed manufacturing costs are $192,000 per year; the fixed selling and administrative expenses are $308,000 per year. Compute the number of units that must be sold each year for the company to break even.The Harris Company has the following standard costs per unit for its one product:

Use the same information as given above for the Harris Company except that in 19X1, 10,800 units were produced and 10,000 units were sold.

Transcribed Image Text:

Materials Labor Manufacturing Overhead Variable Fixed $4 8 $10 Total $26 The fixed cost of $8 per unit is based on producing 10,000 units and fixed overhead of $80,000. The sales price is $40 per unit. Selling and administrative expenses are as follows: variable, $2 per unit; fixed, $50,000 per year. During 19X1, 10,000 units were produced and sold.