For the period Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and the direct labour is 2 hours at a rate of $26 per hour. Fixed manufacturing overhead is applied on the basis of labour hours at a rate of $36 per hour. Rosewood makes and sells 1,000 units per period. How many units must Rosewood sell to breakeven for the period? (a) 450 units (b) 240 units (c) 818 units (d) 409 units
For the period Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and the direct labour is 2 hours at a rate of $26 per hour. Fixed manufacturing overhead is applied on the basis of labour hours at a rate of $36 per hour. Rosewood makes and sells 1,000 units per period. How many units must Rosewood sell to breakeven for the period? (a) 450 units (b) 240 units (c) 818 units (d) 409 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For the period Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and the direct labour is 2 hours at a rate of $26 per hour. Fixed manufacturing overhead is applied on the basis of labour hours at a rate of $36 per hour. Rosewood makes and sells 1,000 units per period. How many units must Rosewood sell to breakeven for the period?
(a) 450 units
(b) 240 units
(c) 818 units
(d) 409 units
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