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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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