Selling Price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 150,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 120,000 per monthHow many units must Lamar produce and sell in order to break-even? 12,500 units. 8,333 units. 22,500 units. 15,000 units.
Selling Price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 150,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 120,000 per monthHow many units must Lamar produce and sell in order to break-even? 12,500 units. 8,333 units. 22,500 units. 15,000 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Lamar has the following data:
How many units must Lamar produce and sell in order to break-even?
| Selling Price | $ | 40 | |
| Variable |
$ | 22 | |
| Fixed manufacturing cost | $ | 150,000 | per month |
| Variable selling & administrative costs | $ | 6 | |
| Fixed selling & administrative costs | $ | 120,000 | per month |
|
12,500 units.
|
||
|
8,333 units.
|
||
|
22,500 units.
|
||
|
15,000 units.
|
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