Question
Ben Gordon, Inc. manufactures 2 products, wheels, and seats. The company has estimated its overhead in the assembling department to be $735000. The company produces
Ben Gordon, Inc. manufactures 2 products, wheels, and seats. The company has estimated its overhead in the assembling department to be $735000. The company produces 300000 wheels and 600000 seats each year. Each wheel uses 2 parts, and each seat uses 3 parts. How much of the assembly overhead should be allocated to wheels?
$183750.
$245000.
$294000.
$315000.
A company desires to sell a sufficient quantity of products to earn a profit of $200000. If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $800000, how many units must be sold to earn a net income of $200000?
212500 units
125000 units
110000 units
65000 units
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