ACC117 Final Exam (FAI × | eztom heducation.com/hm.tpx A manufacturer of cedar s

Question

ACC117 Final Exam (FAI × | eztom heducation.com/hm.tpx A manufacturer of cedar shingles has supplied the following data Bundles of cedar shakes produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income 280,000 $2,072,000 $1,134,000 $436,000 $238,000 $164,000 $100,000 The company's break-even in unit sales is closest to: O 130,149 O 81,081 O 25,038 O 240,000 References Mutiple Choice st Type here to search

Explanation / Answer

Sales revenue per unit = (2072000/280000) = 7.4 per unit

Variable cost per unit = (1134000+238000)/280000 = 4.90 per unit

contribution margin per unit = (7.40-4.90) = 2.50 per unit

Fixed cost = (436000+164000) = 600000

Break even point (unit) = Fixed cost/contribution margin per unit

= 600000/2.5

Break even point (unit) = 240000 unit

so answer is d) 240000

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