Question: Aspen Popular Company prepared the following absorption-costing income statement for the year ended May 31, 2017. Sales (8,000 units)$160,000 Cost of goods sold 108,000 Gross

Aspen Popular Company prepared the following absorption-costing income statement for the year ended May 31, 2017.

Sales (8,000 units)$160,000

Cost of goods sold108,000

Gross margin$52,000

Selling and administrative expenses18,000

Operating income$ 34,000

Additional information follows:

Selling and administrative expenses include $1.50 of variable cost per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs

How many unit must be sold to breakeven under absorption cost and under variable costing?

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