Question
Ms. Janice Meyers, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked
Ms. Janice Meyers, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 2011 is as follows: Total fixed manufacturing overhead $180,000 Total other fixed expenses $200,000 Total variable manufacturing expenses $240,000 Total other variable expenses $240,000 Units produced 60,000 units Budgeted production 60,000 units Units sold 50,000 units Selling price $40
What are breakeven sales in units using absorption costing (round a fractional unit as one unit)?
a. 7093 units
b. 5625 units
c. 6897 units
d. 8000 units
e. 6667 units
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