Queens Co. produces a single product. Information about the product for the past year is as follows:

Production (in units) 100,000

Sales (units) 80,000

Selling price/unit $20.00

Machine hours 50,000

Manufacturing costs:

Direct materials $ 80,000

Direct labor $240,000

Variable overhead $ 40,000

Fixed overhead $200,000

Nonmanufacturing costs:

Variable selling $48,000

Fixed selling $20,000

There were no beginning inventories.

(Round amounts to two decimal places.)

Refer to the data in question 8. If Queens Co. uses absorption costing, the cost of goods sold would be

Given: Sales price per unit $140

Variable cost per unit $100

Fixed costs $50,000

Expected sales 5,000 units

The break-even point in units is

a.	2,500	c.	500
b.	1,250	d.	357