Question
ABC company manufactures a single product.Estimated cost data regarding the product, and other information for the product and the company are as follows: sales price
ABC company manufactures a single product.Estimated cost data regarding the product, and other information for the product and the company are as follows:
sales price per unit
$40
Total variable production cost per unit
$22
Sales commission (computed on sales revenue)
5 %
Fixed costs and expenses:
Manufacturing overhead
$5,598,720
General and administrative
$3,732, 480
Effective income tax rate
40%
Compute the number of units the company must sell in the coming year in order to reach the breakeven point
A.583,200Units
B.518,400Units
C.388,000Units
D.972,000Units
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