Question

$4.00 The following information pertains to Rica Company:

Found in Education: General-Education
Chapter 1, # 1
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 

 

Tutorial
 
$4.00
The following information pertains to Rica Company:
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  • Posted on Feb 22, 2012 at 10:20:12PM
A:
Preview: ... 1  D) 26,000  Answer:  B  BEP Units = Fixed Exp/Unit CM ratio = 130,000 / 13.00 = 10,000   130,000  =  Fix ...

The full tutorial is about 93 words long .