Sunday, June 19, 2011

What is absorption costing breakeven in units?

ACCOUNTING

Multiple Choice

The following information pertains to the Bean Company:



Selling price per unit $123

Standard fixed manufacturing costs per unit $60

Variable selling and administrative costs per unit $12

Standard variable manufacturing costs per unit $3

Fixed selling and administrative costs $48,000

Units produced 10,000 units

Units sold 9,600 units



What is absorption costing breakeven in units?

a. 917 units

b. 1,000 units

c. 5,838 units

d. 6,000 units

Click here for the SOLUTION

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