View History Bookmarks Window Help Exam lI Help Save & E 6 Required information

Question

View History Bookmarks Window Help Exam lI Help Save & E 6 Required information The following information applies to the questions displayed below) The following data are available for product no. CK74, manufactured and sold by Ruby Corporation: Part 1 of 2 Maxinum capaeity with present facilities Total fixed cost (per period) Variable cost per unit sales price per unit 4,500 units 986,337 5 120.29 s 200.48 The number of units of CK74 that Ruby must sell to break-even is: Multiple Choice 0,000 20500 C Prev MacBook Pro 3 4 5 6

Explanation / Answer

Answer is 12,300 units Explanation: Selling price per unit 200.48 Variable cost per unit 120.29 Contribution margin per unit (Selling pricec-Variable cost) 80.19 Total Fixed Cost 986,337 Break even point in units = Fixed Cost / Contribution margin per unit $ 986,337   / $ 80.19 = 12,300 units

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