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A Computer hardware company wants to introduce a new line to produce Pen drives. The Pen drive sales price will be $ 2 0 each.

A Computer hardware company wants to introduce a new line to produce Pen drives. The Pen drive sales price will be $ 20 each. After initial study it is found that raw material cost will be $ 8/unit and direct labor cost will be $ 6/unit. The company needs to allocate certain portion of their workshop floor towards manufacture of Pen drives. The overhead will be $ 200,000, and the insurance will be $ 50,000 to cover all the equipment.
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What is the total variable costs
Question 35Select one:
a.
$240,890
b.
$ 840,000
c.
$ 240,880
d.
$ 450,145
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What is the break even point?
Question 32Select one:
a.
41,667
b.
18,782
c.
20,902
d.
56,145

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