Question
As part of a multi-part cost-volume profit analysis problem, this item draws upon a set of data. For the forthcoming year, Horngran Manufacturing estimates sales
As part of a multi-part cost-volume profit analysis problem, this item draws upon a set of data. For the forthcoming year, Horngran Manufacturing estimates sales of $80,000. The firm has a per unit sales price of $20. Variable costs for the firm are $14 per unit. The total fixed costs for the firm equal $12,000. What is the required selling price in dollars per unit necessary to achieve break-even (with no profit or changes in cost assumed) assuming that 4800 units are sold?
$14.50 per unit
$6.00 per unit
some other amount other than those listed here
$16.50 per unit
$12.00 per unit
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