Yellowstone Company began operations on January 1 to produce a hiking poles. It used an absorption costing system with a planned production volume of 104,000 units. During its first year of operations, the planned production volume was achieved, and there were no fixed selling or administrative expenses. Inventory on December 31 was 10,400 units, and operating income for the year was $374,400. Required: 1. If Yellowstone Company had used variable costing, its operating income would have been $332,800. Compute the break-even point in units under variable costing.
Yellowstone Company began operations on January 1 to produce a hiking poles. It used an absorption costing system with a planned production volume of 104,000 units. During its first year of operations, the planned production volume was achieved, and there were no fixed selling or administrative expenses. Inventory on December 31 was 10,400 units, and operating income for the year was $374,400. Required: 1. If Yellowstone Company had used variable costing, its operating income would have been $332,800. Compute the break-even point in units under variable costing.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 29P: Jellison Company had the following operating data for its first two years of operations: Jellison...
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Yellowstone Company began operations on January 1 to produce a hiking poles. It used an absorption costing system with a planned production volume of 104,000 units. During its first year of operations, the planned production volume was achieved, and there were no fixed selling or administrative expenses. Inventory on December 31 was 10,400 units, and operating income for the year was $374,400.
Required:
1. If Yellowstone Company had used variable costing, its operating income would have been $332,800. Compute the break-even point in units under variable costing.
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