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NEW QUESTION: 1
A company manufactures a single product. Estimated cost data regarding this product and other information for the product and the company are as follows:

The number of units the company must sell in the coming year in order to reach its breakeven point is:
A. 518,400 units
B. 583,200 units
C. 388,800 units
D. 972,000 units
Answer: B
Explanation:
The breakeven point is determined by dividing total fixed costs by the unit contribution margin. The total fixed costs are US $9,331,200 $5,598,720 manufacturing overhead +$3,732,480 general and administrative). The contribution margin is US $16.00 $40 sales
price - $22 variable production cost-$2 commission). Thus, the breakeven point is 583,200
units US $9.331,200 - $16).