The following information is available for ABC Company: Variable Cost = $1 per unit Total Fixed Cost = $5,000 Price per Unit = $5 a) Calculate the Break Even Point in Units _________________ b) What would have been the Net Income if 3000 units had been sold? $___________________ (HINT: prepare an income statement adjusting only the numbers that vary with the number of units sold)    DO NOT USE DOLLAR SIGNS IN YOUR ANSWER.     A. a) 1250; b) 7000   B. a) 7000; b) 12000   C. a) 1250 b) 12000

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 8E: The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is...
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The following information is available for ABC Company:

Variable Cost = $1 per unit

Total Fixed Cost = $5,000

Price per Unit = $5

a) Calculate the Break Even Point in Units _________________

b) What would have been the Net Income if 3000 units had been sold? $___________________ (HINT: prepare an income statement adjusting only the numbers that vary with the number of units sold)    DO NOT USE DOLLAR SIGNS IN YOUR ANSWER.

 

  A.

a) 1250; b) 7000

  B.

a) 7000; b) 12000

  C.

a) 1250 b) 12000

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