Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cincinnati Cylinder Company began operations on January 1 to produce pneumatic cylinders used in a variety of machines. It used an absorption costing system with
Cincinnati Cylinder Company began operations on January 1 to produce pneumatic cylinders used in a variety of machines. It used an absorption costing system with a planned production volume of 76,000 units. During its first year of operations, 76,000 units were produced and there were no fixed selling or administrative expenses Inventory on December 31 was 7,600 units, and operating income for the year was $547,200. Required: 1. If Cincinnati Cylinder Company had used variable costing, its operating income would have been $532,000. Compute the break-even point in units under variable costing. Break-even point units
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