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Title: Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and ... Post by: mzeplin on Jul 29, 2018 Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and the direct labor is 2 hours at a rate of $26 per hour. Manufacturing overhead is applied on the basis of labor hours at a rate of $36 per hour. Rosewood makes and sells 1,000 units per period. How many units must Rosewood sell to breakeven?
A) 409 units B) 450 units C) 240 units D) 818 units Title: Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and ... Post by: godsgrace2013 on Jul 29, 2018 D
Explanation: Correct. Unit Contribution Margin 300 - 160 - (2 x $26) = $88 Fixed cost per period = (2 x $36) x 1,000 units = $72,000 Breakeven = FC / CM = $72,000 / $88 = 818 units |