Problem 8-33 Absorption and Variable Costing; CVP Analysis (LO 8-2, 8-3, 8-4, 8-5) Yellowstone Company began operations on January 1 to produce a single product. It used an absorption costing system with a planned production volume of 106,000 units. During its first year of operations, the planned production volume was achieved, and there were no fixed selling or administrative expenses. Inventory on December 31 was 10,600 units, and operating income for the year was $286,200. Required: 1. If Yellowstone Company had used variable costing, its operating income would have been $233,200. Compute the break-even point in units under variable costing. Break-even point units
Problem 8-33 Absorption and Variable Costing; CVP Analysis (LO 8-2, 8-3, 8-4, 8-5) Yellowstone Company began operations on January 1 to produce a single product. It used an absorption costing system with a planned production volume of 106,000 units. During its first year of operations, the planned production volume was achieved, and there were no fixed selling or administrative expenses. Inventory on December 31 was 10,600 units, and operating income for the year was $286,200. Required: 1. If Yellowstone Company had used variable costing, its operating income would have been $233,200. Compute the break-even point in units under variable costing. Break-even point units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 8-33 Absorption and Variable Costing; CVP Analysis (LO 8-2, 8-3, 8-4, 8-5)
Yellowstone Company began operations on January 1 to produce a single product. It used an absorption costing system with a
planned production volume of 106,000 units. During its first year of operations, the planned production volume was achieved, and
there were no fixed selling or administrative expenses. Inventory on December 31 was 10,600 units, and operating income for the year
was $286,200.
Required:
1. If Yellowstone Company had used variable costing, its operating income would have been $233,200. Compute the break-even point
in units under variable costing.
Break-even point
units
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