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Under absorption costing, a company had the following per unit costs when 10,000 units were produced. Direct labor Direct materials $ 3.00 4.00 Variable overhead
Under absorption costing, a company had the following per unit costs when 10,000 units were produced. Direct labor Direct materials $ 3.00 4.00 Variable overhead 5.00 Total variable cost 12.00 Fixed overhead ($70,000/10,000 units) 7.00 Total product cost per unit $19.00 5 The company sells its product for $64.00 per unit. Due to new regulations, the company must now incur $3.00 per unit of hazardous waste disposal costs and $5,950 per year of fixed hazardous waste disposal costs. Compute the company's break-even point (in units), including hazardous waste disposal costs. Break-even point units
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