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Luden [163]
3 years ago
13

"Moyas Corporation sells a single product for $10 per unit. Last year, the company's sales revenue was $280,000 and its net oper

ating income was $17,000. If fixed expenses totaled $95,000 for the year, the break-even point in unit sales was:"
Business
1 answer:
Harlamova29_29 [7]3 years ago
4 0

Answer:

23,750 units

Explanation:

The computation of the break even point in unit sales is shown below

Break even point = (Fixed expenses) ÷ (Contribution margin per unit)

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

The variable expense per unit is

= (Sale revenue - fixed expenses - net operating income) ÷ (Number of sales units)

= ($280,000 - $17,000 - $95,000) ÷ ($280,000 ÷ 10 per unit)

= ($280,000 - $17,000 - $95,000) ÷ (28,000 units)

= $6 per uni

And, the fixed expenses is $95,000

Now put these values to the above formula  

So, the value would equal to  

= ($95,000) ÷ ($10 - $6)  

= 23,750 units

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Explanation:

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The computation of cost per unit using a variable costing

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Direct labor per unit $16

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The computation of the cost of goods sold using variable costing

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C is the answer




Hope this helps
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