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wrote...
Posts: 367
A year ago
Henry Chapman Manufacturing Inc. incurred the following expenses during 2017:

Fixed manufacturing costs$100,000
Fixed nonmanufacturing costs$87,000
Unit selling price$310
Total unit cost$100
Variable manufacturing cost rate$50
Units produced1,320units

What will be the breakeven point if variable costing is used? (Round your final answer up to the next whole unit.)
A) 891 units
B) 1,000 units
C) 720 units
D) 385 units
Textbook 

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
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wrote...
Posts: 237
A year ago
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 C
Explanation:  Total fixed costs = $100,000 + $87,000 = $187,000
Contribution per unit = $310 - $50 = $260
Breakeven point = $187,000 / $260 = 720 units

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A year ago
Electric Light Bulb Correct, thanks!
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