Title: Jenkins Corporation sells one product. The following information is available for the current month: Post by: untilwexo on Jul 30, 2018 Jenkins Corporation sells one product. The following information is available for the current month:
Selling price per unit$110 Standard fixed manufacturing costs per unit$49 Variable selling and administrative costs per unit$8 Standard variable manufacturing costs per unit$3 Fixed selling and administrative costs$44,000 Units produced14,000 units Units sold 9,600 units What is the variable costing breakeven point in units? (Round your final answer up to the next whole unit.) A) 6,930 units B) 7,796 units C) 7,157 units D) 7,374 units Title: Jenkins Corporation sells one product. The following information is available for the current month: Post by: EllieIx88 on Jul 30, 2018 D
Explanation: Standard fixed manufacturing cost is $49 and hence the total fixed manufacturing cost is $686,000 ($49 14,000 units). Fixed selling and administrative overhead is $44,000. Therefore, the total fixed expense is $730,000 ($686,000 + $44,000). The contribution per unit is $99 ($110 - $8 - $3). Therefore, the breakeven point in units is 7,374 units ($730,000 / $99). Title: Jenkins Corporation sells one product. The following information is available for the current month: Post by: untilwexo on Jul 30, 2018 Thanks for your help!
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