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Hospital Supply, Inc. produced hydraulic hoists that were used by hospitals to move bedridden patients. The cost per unit of manufacturing and marketing a hydraulic
Hospital Supply, Inc. produced hydraulic hoists that were used by hospitals to move bedridden patients. The cost per unit of manufacturing and marketing a hydraulic hoist at the company's normal volume of 3,000 units per month are shown below. Unit manufacturing costs:/ Variable materials Variable labor Variable overhead $5501 825 420 $ 1,795 $ 1,980,000/ Fixed manufacturing overhead Unit marketing costs: Variable (at time of sale) Fixed marketing costs $ 275/ $2,310,000 The following questions refer to the data given above. Unless otherwise stated, assume there is no connection between the situations described in the questions; treat each independently. Unless otherwise stated, assume a regular selling price of $4,350 per unit. Ignore income taxes and other costs not mentioned. 1. What is the break-even volume in units (round up fractional units)? In sales dollars?)
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