Gigondas Incorporated had the following information: Avtivity Driver Unit Variable Cost Level of Activity Driver Units Sold $20 -- Setups 1,000 40 Engineering Hours 60 1,000       Other Data:     Total Fixed Cost (Conventional) $100,000   Total Fixed Cost (ABC) $50,000   Unit Selling Price $40

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Gigondas Incorporated had the following information:

Avtivity Driver

Unit Variable Cost

Level of Activity Driver

Units Sold

$20

--

Setups

1,000

40

Engineering Hours

60

1,000

 

 

 

Other Data:

 

 

Total Fixed Cost (Conventional)

$100,000

 

Total Fixed Cost (ABC)

$50,000

 

Unit Selling Price

$40

 

Calculate the number of units using the activity-based costing approach, that must be sold to earn a before-tax profit of $40,000.

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