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Alik [6]
3 years ago
13

A company's fixed operating costs are $370,000, its variable costs are $3.25 per unit, and the product's sales price is $5.65. W

hat is the company's break-even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number.
Business
1 answer:
victus00 [196]3 years ago
4 0

Answer:

$154,167

Explanation:

Break even point = where profit and loss = 0

so:

Fixed operating costs + (variable costs per unit × Units produced) = sales price × Units produced

$370,000 + ($3.25 × Units produced) = $5.65 × Units produced

$370,000 = $2.4 × Units produced

Units produced = $154,167

So company must produce $154,167 units to make it break even point.

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Answer:

A. Dr Finished Goods $560,240.00

Cr Work In Process $560,240.00

B. $76,760.00

Explanation:

A. Preparation of the journal entry to record the jobs complete

First step is to Calculate the amount of total jobs completed

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Job 224 232,190.00

Job 216 78,300.00

Job 230 67,250.00

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Now let prepare the Journal Entry

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Cr Work In Process $560,240.00

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Now let determine the cost of the unfinished jobs at January 31

Balance in work in process 637,000.00

Less: Cost of completed jobs 560,240.00

Cost of unfinished jobs on January 31 76,760.00

Therefore the cost of the unfinished jobs at January 31 will be $76,760.00

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