Question
Asked Oct 19, 2019
1 views
urrent Attempt in Progress
At the break even pOint of 500 units, variable costs are
$65000, and ixed costs are $3500O. How much is the
selling price per unit?
O $60.00
O $130.00
O $70.00
O $200.00
help_outline

Image Transcriptionclose

urrent Attempt in Progress At the break even pOint of 500 units, variable costs are $65000, and ixed costs are $3500O. How much is the selling price per unit? O $60.00 O $130.00 O $70.00 O $200.00

fullscreen
check_circle

Expert Answer

Step 1

Compute variable cost per unit at break-even point as shown below:

help_outline

Image Transcriptionclose

Total variable cost Variable cost per unit Breakeven units $65,000 500 =S130

fullscreen
Step 2

Compute fixed cost per unit at break-even point as shown below:

help_outline

Image Transcriptionclose

Total fixed cost Fixed cost per unit Breakeven units $35,000 500 = $70

fullscreen
Step 3

Compute selling price per unit at breakeven as shown below:

At breakeven ...

help_outline

Image Transcriptionclose

Selling price per unit = Variable cost per unit Fixed cost per unit S130+S70 - $200

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: Hall Company’s beginning inventory and purchases during the fiscal year ended December 31, 20--, wer...

A: Hey, since there are multiple questions posted, we will answer first question. If you want any speci...

question_answer

Q: Homework question 6, chapter 9

A: Calculate premium on bonds payable:Premium on bonds payable = Carrying value of bonds - Face value o...

question_answer

Q: The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the aver...

A: Cost incurred to produce and sell a product consist of 2 components, variable cost, and fixed cost.V...

question_answer

Q: Accounting Question

A: Amount of bad debt expense that would be recorded is $2,480.

question_answer

Q: How to calculate sales revenue from Cost of Goods Sold, inventory, or cost of goods available for sa...

A: Without selling price per unit, calculation of sales revenue is not possible with the given details....

question_answer

Q: Madison Inc. reported sales of $1,000,000, a debit balance in Accounts Receivable of $80,000, and a ...

A: Prepare journal entry.

question_answer

Q: What are the basics of a balance sheet?

A: Financial statement:  Financial statements are condensed summary of transactions communicated in the...

question_answer

Q: Following is information on two alternative investments being considered by Tiger Co. The company re...

A: Net Present Value Method: Net present value method is used to compare the initial cash outflow of th...

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: