A manufacturing firm sells its sole product for $10 per unit, with a unit contribution margin of $6. The fixed manufacturing cost rate per unit is $2 based on a denominator capacity of 1 million units, and fixed marketing costs are $1.500,000. If 900,000 units are produced, the absorption costing breakeven point in units sold is 425,000 units 518,400 units 583,200 units 972,000 units
A manufacturing firm sells its sole product for $10 per unit, with a unit contribution margin of $6. The fixed manufacturing cost rate per unit is $2 based on a denominator capacity of 1 million units, and fixed marketing costs are $1.500,000. If 900,000 units are produced, the absorption costing breakeven point in units sold is 425,000 units 518,400 units 583,200 units 972,000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- A manufacturing firm sells its sole product for $10 per unit, with a unit contribution margin of $6. The fixed
manufacturing cost rate per unit is $2 based on a denominator capacity of 1 million units, and fixed marketing costs are $1.500,000. If 900,000 units are produced, the absorption costing breakeven point in units sold is
- 425,000 units
- 518,400 units
- 583,200 units
- 972,000 units
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