Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the break-even point in units.

Multiple Choice

• 4,444.

• 1,933.

• 2,900.

• 5,500.

• 1,160.

Which of the following statements is true?

Multiple Choice

• Absorption costing treats fixed overhead as a period cost.

• Variable costing treats fixed overhead as a period cost.

• Managers can manipulate earnings more easily under variable costing by varying the production level.

• Absorption costing treats fixed overhead as an expense in the period it is incurred.

• Variable costing excludes all overhead from product costs.