Question

# \$3.50The following information pertains to Rica Company:

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Chapter 1, # 9
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Q:

The following information pertains to Rica Company:

Sales (50,000 units)                       \$1,000,000

Manufacturing costs:

Variable                                           340,000

Fixed                                                 70,000

Selling and admin. expenses:

Variable                                             10,000

Fixed                                                 60,000

How much is Rica's break-even point in number of units?

A)   9,848

B)   10,000

C)   18,571

D)   26,000

Tutorial

\$3.50
The following information pertains to Rica Company:
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• Posted on Dec. 03, 2011 at 03:03:47AM
A:
Preview: ... nits?      A)   9,848      B)   10,000      C)   18,571      D)   26,000    Answer is  B  BEP Units = Fixed Exp/Unit CM ratio =  130,000 / 13.00 = 10,000                      130,000 =  Fixe ...

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