Trusted Products Company makes a household appliance with model number L800. The goal for 2018 is to reduce direct material usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of L800 units the can be produced. The industry market size for appliances increased 15% from 2017 to 2018. The following additional data are available for 2017 and 2018:

2017 2018

Units of L800 produced and sold 40000 46000

Selling price 320 300

Direct materials 99000 97500

Direct materials costs per square foot 34 36

Manufacturing capacity for L800 units 50000 48400

Total conversion costs 1210000 1250000

Conversion costs per unit of capacity 25 25

What is the cost effect of the growth component for conversion costs?

1. 40000 U
2. 1600 U
3. 40000 F
4. 0

Throughput contributions equals___

1. Revenues minus manufacturing overhead
2. Revenues minus all direct labor costs
3. Revenues minus all direct material costs of goods sold
4. Variable costs minus fixed costs

Ms. Sophia jones, the company president has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company from 2017 is as follows:

Total fixed manufactured overhead 180000

Total other fixed expenses 204000

Total variable manufacturing expenses 250000

Total other variable expenses 240000

Units produced 60000 units

Budgeted production 60000 units

Units sold 50000 units

Selling price $42

What are breakeven sales in units using absorption costing?

A.5393 units

B.6617 units

C.11350 units

d. 5321 units

IN _, fixed manufacturing costs are included as inventoriable costs.

1. Throughput costing
2. Absorption costing
3. Period costing
4. Variable costing