Question 10 (8 points) Listen Department A would like to produce widgets. Total fixed costs allocated to the department are $50,000. Total number of widgets expected to be sold based on a market study are 10,000. Total variable costs are $30,000 and the widget selling price is $8 per unit. A. How many widgets will the department have to sell in order to break-even? B. What is the break-even point in revenue? C. If Dept. A wanted to make a profit of $20,000 how many widgets would the company have to sell? D. Prepare an income statement proving that the company will have a profit of $20,000. I Question 10 options: A

Department A would like to produce widgets. Total fixed costs allocated to the department are $50,000. Total number of widgets expected to be sold based on a market study are 10,000. Total variable costs are $30,000 and the widget selling price is $8 per unit. A. How many widgets will the department have to sell in order to break-even? B. What is the break-even point in revenue? C. If Dept. A wanted to make a profit of $20,000 how many widgets would the company have to sell? D. Prepare an income statement proving that the company will have a profit of $20,000