Scott Confectionery sells its Stack-o-Choc candy bar for $0.8. The variable cost per unit for the candy bar is $0.45; total fixed costs are $175,000.   An increase in chocolate prices causes the variable cost per unit to increase to $0.55. Calculate the breakeven point in units? (Round answer to 0 decimal places, e.g. 5,275.) Breakeven point in units   enter breakeven point value for number of bars in units rounded to 0 decimal places   bars Using the above breakeven point in units, calculate breakeven sales in dollars. (Round answer to 0 decimal places, e.g. 5,275.) Breakeven sales in dollars

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.