Wallace Industrial sells two products, large forklifts and small forklifts. A large forklift sells for

$80,000

per unit with variable costs of

$29,000

per unit. Small forklifts sell for

$50,000

per unit with variable costs of

$13,000

per unit. Total fixed costs for the company are

$2,430,000.

Wallace Industrial typically sells one large forklift for every

three

smalls. What is the breakeven point in total units?

A.60units

B.14units

C.28units

D. 162 units

2)

Which of the following is an example of a cost item that should be classified as an internal failure cost?

A.

Product return costs

B.

Inspection costs

C.

Employee training costs

D.

Rework costs

3)

The selling price of a particular product is

$39

per unit, fixed costs total

$151,200,

and the breakeven sales in dollars is

$945,000,

what will the variable expense per unit be?

A.

$204.75

B.

$6.24

C.

$45.24

D.

$32.76