Question
1. The following information is available for ABC Company: Variable Cost = $1 per unit Total Fixed Cost = $5,000 Price per Unit = $5
1. The following information is available for ABC Company:
Variable Cost = $1 per unit
Total Fixed Cost = $5,000
Price per Unit = $5
a) Calculate the Break Even Point in Units _________________
b) What would have been the Net Income if 3000 units had been sold? $___________________ (HINT: prepare an income statement adjusting only the numbers that vary with the number of units sold) DO NOT USE DOLLAR SIGNS IN YOUR ANSWER.
|
| A. | a) 1250; b) 7000 |
|
| B. | a) 7000; b) 12000 |
|
| C. | a) 1250 b) 12000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
12th edition
133451860, 978-0133451863
