Answered: Refik Company has a break-even point of…

Refik Company has a break-even point of 20,000 units. If the company’s sole product sells for $38 and fixed costs total $260,000, the variable cost per unit must be: a. $14 b. $12 c. $25 d. $47

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Question

Refik Company has a break-even point of 20,000 units. If the company’s sole product
sells for $38 and fixed costs total $260,000, the variable cost per unit must be:

a. $14

b. $12

c. $25

d. $47

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