Question
The Kringel Company provides the following information: Sales (200,000 units) $500,000 Manufacturing Costs: Variable 170,000 Fixed 30,000 Selling and Administrative Costs: Variable 80,000 Fixed 20,000
The Kringel Company provides the following information: Sales (200,000 units) $500,000 Manufacturing Costs: Variable 170,000 Fixed 30,000 Selling and Administrative Costs: Variable 80,000 Fixed 20,000
Required:
to. What is the breakeven point in units for Kringel?
b. What is Kringel's variable cost per unit?
C. What is the contribution margin per unit for Kringel?
d. Should a multi-product company focus on breaking even for the individual product? Why or why not? Argue with logical arguments.
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
