data: Fixed Factory Overhead Cost = 50,000 dollars Fixed Selling Overheads Cost = 10,000 dollars Variable Manufacturing Cost per unit = 13 Variable Selling Cost per unit = 5 Selling Price per unit = 35. Compute (a) the break-even point in terms of sales value (b) number of units that must be sold to earn a profit of 80,000 dollars
data: Fixed Factory Overhead Cost = 50,000 dollars Fixed Selling Overheads Cost = 10,000 dollars Variable Manufacturing Cost per unit = 13 Variable Selling Cost per unit = 5 Selling Price per unit = 35. Compute (a) the break-even point in terms of sales value (b) number of units that must be sold to earn a profit of 80,000 dollars
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 5E
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Question
Given data:
Fixed
Fixed Selling Overheads Cost = 10,000 dollars
Variable Manufacturing Cost per unit = 13
Variable Selling Cost per unit = 5
Selling Price per unit = 35.
Compute
(a) the break-even point in terms of sales value
(b) number of units that must be sold to earn a profit of 80,000 dollars
![Given data:
Fixed Factory Overhead Cost = 50,000 dollars
Fixed Selling Overheads Cost = 10,000 dollars
Variable Manufacturing Cost per unit = 13
Variable Selling Cost per unit = 5
Selling Price per unit = 35.
Compute
(a) the break-even point in terms of sales value
(b) number of units that must be sold to earn a profit of 80,000 dollars](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F567de952-1588-47af-9102-80da18111d0a%2F945f9b62-a968-4caa-991d-a4f5aee2d6f5%2Fohas3g_processed.png&w=3840&q=75)
Transcribed Image Text:Given data:
Fixed Factory Overhead Cost = 50,000 dollars
Fixed Selling Overheads Cost = 10,000 dollars
Variable Manufacturing Cost per unit = 13
Variable Selling Cost per unit = 5
Selling Price per unit = 35.
Compute
(a) the break-even point in terms of sales value
(b) number of units that must be sold to earn a profit of 80,000 dollars
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