Question
Enola, SA., manufactures a product that sells for 500. The variable costs per unit are: Direct materials 100; Direct labour 80 and Variable manufacturing overhead
Enola, SA., manufactures a product that sells for 500. The variable costs per unit are: Direct materials 100; Direct labour 80 and Variable manufacturing overhead 50. During the year, the budgeted fixed manufacturing overhead is estimated to be 500,000, and budgeted fixed selling and administrative costs are expected to be 250,000. Variable selling costs are 20 per unit. The break-even point in units is
. cannot be determined.
b. 3,300 units
c. 3,100 units
d. 3,200 units
e. 3,000 units
Enola, SA., manufactures a product that sells for 450. The variable costs per unit are: Direct materials 100; Direct labour 80 and Variable manufacturing overhead 50. During the year, the budgeted fixed manufacturing overhead is estimated to be 300,000, and budgeted fixed selling and administrative costs are expected to be 200,000. Variable selling costs are 20 per unit. The number of units that must be sold to earn 330,000 in profit before taxes is
Select one:
a. 4,100 units
b. cannot be determined
c. 4,200 units
d. 4,050 units
e. 4,150 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