16. Taurus Corporation produces microwave ovens that are sold for $150 each. The materials and other...

  

Transcribed Image Text:

16. Taurus Corporation produces microwave ovens that are sold for $150 each. The materials and other variable costs are $60 per unit. The fixed costs incurred each year for factory rental and factory maintenance are $250,000. The machinery costs $2 million and is depreciated on a straight-line basis over 10 years to a salvage value of zero. What is the accounting break-even level of sales in terms of both sales revenue and number of units sold? Color 16. Taurus Corporation produces microwave ovens that are sold for $150 each. The materials and other variable costs are $60 per unit. The fixed costs incurred each year for factory rental and factory maintenance are $250,000. The machinery costs $2 million and is depreciated on a straight-line basis over 10 years to a salvage value of zero. What is the accounting break-even level of sales in terms of both sales revenue and number of units sold? Color

Answer rating: 100% (QA)

To find the accounting breakeven level of sales we need to determine the sales revenue and the numbe... View the full answer