Sunday, June 19, 2011

What is the breakeven point in units using absorption costing if the units produced are actually 2,250?

ACCOUNTING

Multiple Choice

Greene Manufacturing incurred the following expenses during 20x2:


Fixed manufacturing costs $45,000

Fixed nonmanufacturing costs $35,000

Unit selling price $100

Total unit cost $40

Variable manufacturing cost rate $20

Units produced 1,340 units


What is the breakeven point in units using absorption costing if the units produced are actually 2,250?

a. 1,330 units

b. 1,000 units

c. 887 units

d. 583 units

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