Under absorption costing, a company had the following per unit costs when 10,000 units were produced. Direct labor $ 3.80 Direct materials 4.80 Variable overhead 5.80 Total variable cost 14.40 Fixed overhead ($86,000/10,000 units) 8.60 Total product cost per unit $23.00 The company sells its product for $75.20 per unit. Due to new regulations, the company must now incur $3.80 per unit of hazardous waste disposal costs and $4,630 per year of fixed hazardous waste disposal costs. Compute the company's break-even point (in units), including hazardous waste disposal costs. Break-even point 1,486 units

Under absorption costing, a company had the following per unit costs when 10,000 units were produced. Direct labor $ 3.80 Direct materials 4.80 Variable overhead 5.80 Total variable cost 14.40 Fixed overhead ($86,000/10,000 units) 8.60 Total product cost per unit $23.00 The company sells its product for $75.20 per unit. Due to new regulations, the company must now incur $3.80 per unit of hazardous waste disposal costs and $4,630 per year of fixed hazardous waste disposal costs. Compute the company's break-even point (in units), including hazardous waste disposal costs. Break-even point 1,486 units

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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