Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Rubber Ducks Inc. produces inflatable yellow dinghies that sell for $256 each. The cost to manufacture the dinghies consists of the following: Direct materials $
Rubber Ducks Inc. produces inflatable yellow dinghies that sell for $256 each.
The cost to manufacture the dinghies consists of the following:
Direct materials $ 45 per unit
Direct labour $ 64 per unit
Variable manufacturing overhead $ 14 per unit
Fixed manufacturing overhead $ 5 at a level of 3,500 units made
Annually
Selling and administrative costs consist of the following:
Variable selling costs $ 1 per unit
Fixed selling costs $15,500 per year
What is the number of dinghies that must be sold annually to break even?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started