Question
Asked Oct 19, 2019
107 views
rt
A company sells a product which has a unit sales price of $6,
unit variable cost of $4 and total fixed costs of $210000.
The number of units the company must sell to break even is
O 52500 units.
350000 units.
35000 units
O 105000 units.
help_outline

Image Transcriptionclose

rt A company sells a product which has a unit sales price of $6, unit variable cost of $4 and total fixed costs of $210000. The number of units the company must sell to break even is O 52500 units. 350000 units. 35000 units O 105000 units.

fullscreen
check_circle

Expert Answer

Step 1

Compute contribution margin per unit as shown below:

help_outline

Image Transcriptionclose

Contribution margin per unit =Sales price -Variable cost $6-S4 =S2

fullscreen
Step 2

Compute break even sales units as ...

help_outline

Image Transcriptionclose

Total fixed cost Break even sales units = Contribution margin per unit S210,000 $2 105,000 units

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Cost Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: 47. Use Oma Bean Corporation's adjusted trial balance to prepare Oma Bean's statement of stockholder...

A: Click to see the answer

question_answer

Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of th...

A: Calculate the amount of overapplied or underapplied manfacturing overhead at the end of the year:

question_answer

Q: Why is the reporting of investments and fair value required? Justify your response.

A: Investment refers to the deposits made in securities to earn a regular income and capital appreciati...

question_answer

Q: Dunng its Secand and third qvarters OF Fiscal 20 14, Rasbery inc wrote cown s BB lo Smrtphone invent...

A: Click to see the answer

question_answer

Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tap...

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...

question_answer

Q: On July 1, Year 1, the Barley Company loaned $50,000 to the Jackson Co. The note has a stated intere...

A: Given:Principal loaned - $50,000Interest rate – 10%Date of note issued – July 1, Year 1Maturity date...

question_answer

Q: Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance ...

A: a) Journal entry to record bad debts written off, in direct write-off method.

question_answer

Q: Z-Mart uses the perpetual inventory system and has its own credit card. Z-Mart charges a per-month i...

A: Accounts receivable:Accounts receivable is the amount of cash owed to the company by the customer fo...

question_answer

Q: Homwork question 5- chapter 9

A: Calculate the amount of interest expense: