Question
X Company sells one product. The following are the accountant's price and cost estimates for 2020: Selling Price 16.76 Direct Materials 4.51 Direct Labor (all
X Company sells one product. The following are the accountant's price and cost estimates for 2020:
| Selling Price | 16.76 |
| Direct Materials | 4.51 |
| Direct Labor (all varible) | 2.56 |
| Variable Overhead | 3.81 |
| Variable Selling and Administration | 1.80 |
| Fixed overhead | 14700 |
| Fixed Selling and Administration | 12000 |
Unit sales in 2019 were 5,700; unit sales in 2020 are expected to be 5,300.
The accountant is uncertain about her $2.56 direct labor estimate. What must direct labor be in 2020 in order for X Company to breakeven (rounded to two decimal places)?
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Accounting And Causal Effects Econometric Challenges
Authors: Douglas A Schroeder
1st Edition
1441972242, 9781441972248
