Ms. Sophia Jones, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 2017 is as follows: Total fixed manufacturing overhead Total other fixed expenses Total variable manufacturing expenses Total other variable expenses Units produced Budgeted production Units sold Selling price $185,000 $202,000 $260,000 $240,000 70,000 units 70,000 units 55,000 units $42
Ms. Sophia Jones, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 2017 is as follows: Total fixed manufacturing overhead Total other fixed expenses Total variable manufacturing expenses Total other variable expenses Units produced Budgeted production Units sold Selling price $185,000 $202,000 $260,000 $240,000 70,000 units 70,000 units 55,000 units $42
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ms. Sophia Jones, the company president, has heard that there are multiple breakeven points for every product
She does not believe this and has asked you to provide the evidence of such a possibility. Some information about
the company for 2017 is as follows:
Total fixed manufacturing overhead
Total other fixed expenses
Total variable manufacturing expenses
Total other variable expenses
Units produced
Budgeted production
Units sold
Selling price
$185,000
$202,000
$260,000
$240,000
70,000 units
70,000 units
55,000 units
$42
Transcribed Image Text:Units produced
Budgeted production
Units sold
Selling price
What are breakeven sales in units using absorption costing if the production units are actually 55,000? (Round
any intermediary calculations to the nearest cent and your final answer up to the next whole unit.)
OA. 7,505 units
B. 6,937 units
OC. 11,760 units
Sn
70,000 units
70,000 units
55,000 units
$42
1304
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