Question
Kosco Corporation produces a single product. The company's absorption cost income statement for March is as follows: Kosco Corporation Income Statement For the month ended
Kosco Corporation produces a single product. The company's absorption cost income statement for March is as follows:
Kosco Corporation | ||
Sales (2,400 units) | $48,000 | |
cost of goods sold | 24,000 | |
Gross margin | 24,000 | |
Selling and administration expenses: | ||
Fixed | $7,200 | |
Variable | 9,600 | 16,800 |
operating margin | $7,200 |
During March, the company's variable production costs were $8 per unit and its fixed manufacturing overhead costs totaled $5,000.
Calculate the break-even point in units for the month under variable costing.
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