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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
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).