Gigondas Incorporated had the following information:Avtivity DriverUnit Variable CostLevel of Activity DriverUnits Sold$20--Setups1,00040Engineering Hours601,000 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.

Formula: Unit Contribution margin = Selling price per unit - Variable cost per unit

Answered: Gigondas Incorporated had the following…

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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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

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