Information about a product is given. Fixed costs total $50 000 and planned production is 2000 units.
Question:
Information about a product is given.
Fixed costs total $50 000 and planned production is 2000 units. Which action is necessary to break even?
Decrease cost of:
A. Direct labour by 20%
B. Direct labour by 25%
C. Direct material by 10%
D. Direct material by 20%
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Step by Step Answer:
To calculate the breakeven point we need to determine the total cost per unit and then find out how many units need to be sold to cover the fixed cost...View the full answer
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