Lamar has the following data:Selling price$ 40 Variable manufacturing cost$ 22 Fixed manufacturing cost$ 180,000per monthVariable selling & administrative costs$ 6 Fixed selling & administrative costs$ 150,000per monthHow many units must Lamar produce and sell in order to break-even?

The Break-even point indicates that total units are to be sold by the business entity to recover its…

Answered: Lamar has the following data: Selling…

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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Selling price	$ 40
Variable manufacturing cost	$ 22
Fixed manufacturing cost	$ 180,000	per month
Variable selling & administrative costs	$ 6
Fixed selling & administrative costs	$ 150,000	per month

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Lamar has the following data: Selling price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 180,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 150,000 per month How many units must Lamar produce and sell in order to break-even?