6te
At a break-even point of 400 units, variable costs were $400 and fixed costs were $200. What will the 401st unit sold contribute to operating profits before income taxes?
-$0.50
-$1.00
-$1.50
-$2.00
BEP(units) = fixed cost/contribution per unit 400 = 200/x\ x = 200/400 = $.50 per unit hence 401st unit sold contribution to operating profits will be $.50 answer |
6te At a break-even point of 400 units, variable costs were $400 and fixed costs were...
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APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Lennon Products Further analysis of Lennon Products’s fixed costs revealed that the company actually faces annual fixed overhead costs of $9,800 and annual fixed selling and administrative costs of $4,200. Variable cost estimates are correct: direct materials cost, $4.00 per unit; direct labor costs, $5.00 per unit; and variable overhead costs, $1.00 per unit. At this time, the selling price of $20 will not change. Complete the following formulas...
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