Question
X Company sells one product. The following are the accountant's price and cost estimates for next year: Selling price Direct materials per unit $17.39
X Company sells one product. The following are the accountant's price and cost estimates for next year: Selling price Direct materials per unit $17.39 4.35 Direct labor per unit [all variable] 1.73 Variable overhead per unit 2.20 Variable selling and 2.40 administration per unit Total fixed overhead $12,600 Total fixed selling and administration 13,900 Unit sales this year are expected to be 6,400; next year, they're expected to be 5,900. The accountant is uncertain about her $2.20 variable overhead cost per unit estimate. What must variable overhead cost per unit be next year in order for X Company to breakeven (rounded to two decimal places)? B: $1.88 OC: $2.50 OD: $3.32 OE: $4.42 OF: $5.88 A: $1.41 Submit Answer Tries 0/99
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