Question: Answer the following questions using the information below: Ms. Janice Meyers, the company president, has heard that there are multiple breakeven points for every product.
Answer the following questions using the information below: Ms. Janice Meyers, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 2011 is as follows:
| Total fixed manufacturing overhead | $180,000 |
| Total other fixed expenses | $200,000 |
| Total variable manufacturing expenses | $240,000 |
| Total other variable expenses | $240,000 |
| Units produced | 60,000 | units |
| Budgeted production | 60,000 | units |
| Units sold | 50,000 | units |
| Selling price | $40 |
What are breakeven sales in units using absorption costing if the production units are actually 25,000?
Select one:
A. 6,667 units
B. 7,931 units
C. 5,625 units
D. 7,667 units
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