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White raven [17]
3 years ago
9

Stone Corporation is a manufacturing company that makes small electric motors it sells for $45 per unit. The variable costs of p

roduction are $25 per motor, and annual fixed costs of production are $800,000. How many units of product must Stone make and sell to break even?
Business
1 answer:
Anton [14]3 years ago
5 0

Answer:

40,000 units

Explanation:

Given that,

Selling price per unit = $45 per unit

Variable cost per unit = $25

Fixed cost = $800,000

Contribution margin per unit:

= Selling price per unit - variable cost per unit

= $45 - $25

= $20

Break - Even units:

= Fixed cost ÷ Contribution margin per unit

= $800,000 ÷ $20

= 40,000 units

Therefore, the Break - Even sales in units are 40,000.

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fiasKO [112]

Answer:

The adjusting entry will be shown below:

Explanation:

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