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Answer the following question(s) using the information below. Ms. Andrea Chadwick, the company president, has heard that there are multiple break-even points for every product.
Answer the following question(s) using the information below. Ms. Andrea Chadwick, the company president, has heard that there are multiple break-even points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for current year is as follows: Total fixed manufacturing overhead Total other fixed expenses Total variable manufacturing expenses Total other variable expenses Units produced Budgeted production Units sold Selling price $180,000 $200,000 $120,000 $120,000 30,000 units 30,000 units 25,000 units $40 13) What are break-even sales in units using variable costing? A) 5,625 units B) 6,250 units 11,875 units D) 12,180 units E) 10,556 units 14) What are break-even sales in units using absorption costing? A) 5,625 units B) 6,667 units 0769 units D) 8,000 units E) 7 693 units 15) What are break-even sales in units using absorption costing if the production units are actually 25,000? A) 5,625 units B) 6,667 units C) 7,667 units D) 8,847 units E) 1,154 units
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