Question
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operation: Variable Cost per Unit:
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operation:
Variable Cost per Unit:
Manufacturing:
Direct Materials: $20
Direct Labor: $12
Variable Manufacturing Overhead: $4
Variable Selling and Administrative: $2
Fixed Costs per year:
Fixed Manufacturing Overheard: $960000
Fixed Selling and Administrative Expenses: $240,000
During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of business. it produced 75000 units and sold 50,000 units. During its third year of business, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $58 dollars per unit. Compute the company's break even point in unit-sales.
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