Sunday, June 19, 2011

What will be the breakeven point in units if absorption costing is used?

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 will be the breakeven point in units if absorption costing is used?

a. 1,330 units

b. 1,000 units

c. 887 units

d. 563 units

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