ACCOUNTING
Multiple Choice
Ms. Andrea Chadwick, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 20x2 is as follows:
Total fixed manufacturing overhead $180,000
Total other fixed expenses $200,000
Total variable manufacturing expenses $120,000
Total other variable expenses $120,000
Units produced 30,000 units
Budgeted production 30,000 units
Units sold 25,000 units
Selling price $40
What are breakeven sales in units using absorption costing?
a. 5,625 units
b. 6,667 units
c. 7,692 units
d. 8,000 unitss
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