Plat Company operated at normal capacity during the current year producing 50,000 units of its single product. Sales totaled 40,000 units at an average price of $20 per unit. Variable manufacturing costs were $8 per unit and variable marketing costs were $4 per unit sold. Fixed costs amounted to $108,000 for manufacturing and $80,000 for marketing. There was no year-end work in process inventory. Ignore taxes. What is Plat's break-even point in sales dollars for the current year?

Plat Company operated at normal capacity during the current year producing 50,000 units of its single product. Sales totaled 40,000 units at an average price of $20 per unit. Variable manufacturing costs were $8 per unit and variable marketing costs were $4 per unit sold. Fixed costs amounted to $108,000 for manufacturing and $80,000 for marketing. There was no year-end work in process inventory. Ignore taxes. What is Plat's break-even point in sales dollars for the current year?

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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