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8. The Foster Company has three major products, CP10, CP20, and the CP35. Data from last year is shown below: CP10 Sales (units) 300 Sales price per unit $300 Direct material per $30 unit Direct labor per unit $45 Fixed Overhead per $45 unit CP20 500 $250 $20 $30 $30 CP35 300 $180 $15 $30 $30 There is no variable overhead. Fixed selling expenses were $150,000 for the year. a. Find the total fixed cost (overhead + selling) per year. b. Assuming the product mix remains the same, find the breakeven point in number of units sold for each product.

8. The Foster Company has three major products, CP10, CP20, and the CP35. Data from last year is shown below: CP10 Sales (units) 300 Sales price per unit $300 Direct material per $30 unit Direct labor per unit $45 Fixed Overhead per $45 unit CP20 500 $250 $20 $30 $30 CP35 300 $180 $15 $30 $30 There is no variable overhead. Fixed selling expenses were $150,000 for the year. a. Find the total fixed cost (overhead + selling) per year. b. Assuming the product mix remains the same, find the breakeven point in number of units sold for each product.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8. The Foster Company has three major products, CP10, CP20, and the CP35. Data from last year is shown below: CP10 Sales (units) 300 Sales price per unit $300 Direct material per $30 unit Direct labor per unit $45 Fixed Overhead per $45 unit CP20 500 $250 $20 $30 $30 CP35 300 $180 $15 $30 $30 There is no variable overhead. Fixed selling expenses were $150,000 for the year. a. Find the total fixed cost (overhead + selling) per year. b. Assuming the product mix remains the same, find the breakeven point in number of units sold for each product.
Transcribed Image Text:8. The Foster Company has three major products, CP10, CP20, and the CP35. Data from last year is shown below: CP10 Sales (units) 300 Sales price per unit $300 Direct material per $30 unit Direct labor per unit $45 Fixed Overhead per $45 unit CP20 500 $250 $20 $30 $30 CP35 300 $180 $15 $30 $30 There is no variable overhead. Fixed selling expenses were $150,000 for the year. a. Find the total fixed cost (overhead + selling) per year. b. Assuming the product mix remains the same, find the breakeven point in number of units sold for each product.
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