Question

$3.50 The following information pertains to Rica Company:

Found in Education: General-Education
Chapter 1, # 9
Posted by :
volcanblack
 
 
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 

 

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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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