Refer to the information in QS 6-16. The company sells its product for $50 per unit. Due
Question:
Refer to the information in QS 6-16. The company sells its product for $50 per unit. Due to new regulations, the company must now incur $2 per unit of hazardous waste disposal costs and $8,500 per year of fixed hazardous waste disposal costs. Compute the company’s break-even point (in units), including hazardous waste disposal costs.
QS 6-16
Direct labor ...................................................... $ 2
Direct materials .................................................. 3
Variable overhead .............................................. 4
Total variable cost .............................................. 9
Fixed overhead ($50,000/10,000 units) ........... 5
Total product cost per unit ........................... $14
Step by Step Answer:
Managerial Accounting
ISBN: 978-1260482935
7th edition
Authors: John J Wild, Ken W. Shaw, Barbara Chiappetta