It would be 610.32 . My teacher helped me with that one
Answer:
e. All of these choices are correct.
Explanation:
Note:
Statement a. about production budget is correct as the production budget only estimates number of units to be produced, in quantity and not in dollars and therefore is not converted into dollars.
Statement b. about sales budget is also correct as it shows the quantity in units and also in value.
Statement c. about overhead budget is also correct as the budget segregates variable and fixed overheads properly.
Statement d. about labor budget is correct, as in this budget an average rate is used for calculating the expenses.
Therefore all of the above is correct.
B. Employees can brainstorm to find causes and possible solutions
The break-even point in units using the mathematical equation is 2,000 in units and the unit contribution margin is 80 per unit.
<h3>Break even points in units</h3>
a. Break-even point in unit
Using this formula
Break-even point in unit=Fixed cost/(Selling price-Variable cost)
TC = FC + VC
Sales - TC = Net Income
Sales - TC = 0
Sales - FC - VC = 0
2500(Q)-160,000-170(Q) = 0
80(Q)-160,000 = 0
80(Q)=160,000
Q=160,000/80
Q=2,000 break-even in units
b. Unit contribution margin
Unit contribution margin = Selling price- Variable cost
Unit contribution margin= $250 - $170
Unit contribution margin =$80 per unit
Inconclusion the break-even point in units using the mathematical equation is 2,000 in units and the unit contribution margin is 80 per unit.
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