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Thomas Company had the following information: Activity Driver Unit Variable Cost Level of Activity Driver Units sold 20 -- Setups 1,000 80 Engineering hours 60
Thomas Company had the following information:
Activity Driver | Unit Variable Cost | Level of Activity Driver |
Units sold | 20 | -- |
Setups | 1,000 | 80 |
Engineering hours | 60 | 2,000 |
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Other data: |
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Total fixed costs (traditional) | 800,000 |
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Total fixed costs (ABC) | 400,000 |
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Unit selling price | 40 |
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What is the break-even point in units using ABC?
a. 15,000 units
b. 45,000 units
c. 75,000 units
d. 30,000 units
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