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Solution Library
Calculate Cost Of Break-Even Point In Units For The Month
Question
Kilihea Corporation produces a single product. The company's absorption costing income statement for July follows:
|
Kilihea Corporation |
|
|
Sales (14,500 units) |
$710,500 |
|
Cost of goods sold |
443,700 |
|
Gross margin |
266,800 |
|
Selling and administrative expenses: |
|
|
Fixed |
130,500 |
|
Variable |
72,500 |
|
Total selling and administrative expense |
203,000 |
|
Net operating income |
$ 63,800 |
The company's variable production costs are $22.60 per unit and its fixed manufacturing overhead totals $122,600 per month. The break-even point in units for the month under variable costing is
a. 8,177 units
b. 10,077 units
c. 11,827 units
d. 8,977 units
Summary
The question belongs to Accounting and it discusses about calculation of break-even point in units for the month.
Total Word Count 48
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