Each of the following would affect the breakeven point except a change in the: n

ID: 2483175 • Letter: E

Question

Each of the following would affect the breakeven point except a change in the: number of units sold. variable costs per unit. total fixed costs. sales price per unit. None of these. Anticipated unit sales are January, 5,000, February, 4,000, and March 8,000 Finished goods are consistently maintained at 80% of the following month's sales If units cost $10 each to pioduce, how much is February's total cost of production? $0 $40,000 $72000 $80 000 None of these Which of the following is one of the purposes of standard costs? To aid in planning controlling and cost-volume-profit analysis. To replace budgets and budgeting. To use them as a basis for external-reporting purposes. To eliminate having to account for underapplied or overapplied factory overhead. None of these.

Explanation / Answer

Answer: A. number of units sold

Break Even point in Units= Fixed Cost/ sales price unit- variable cost per unit

Hence change above three will effect the break even point.

Only no of units sold will not effect the break even point

Answer:$72,000

Production Budget

Particulars

Jan

Feb

Mar

Budgeted unit sales

5,000

4,000

8,000

Add: Ending production Balance

3,200

6,400

Total Needs

8,200

10,400

8,000

Less: Beginning Production Balance

(4,000)

(3,200)

(6,400)

Required Production in Units

4,200

7,200

1,600

Cost per Unit

$ 10

Production Cost

$ 42,000

$ 72,000

$ 16,000

Answer: A. To aid in planning ,controlling , and cost volume profit analysis

Standard costing predetermined cost which helps in planning In advance and controlling the effected areas