Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flows. The following...

  

Transcribed Image Text:

Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flows. The following cost information relates to the product. Unit Costs $3.25 Direct materials Direct labor Distribution The company will also be absorbing $120,000 of additional fixed-costs associated with this new product. A corporate fixed charge of $20,000 currently absorbed by other products will be allocated to this new product. 4.00 .75 If the selling price is $14 per unit, calculate its break-even point Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flows. The following cost information relates to the product. Unit Costs $3.25 Direct materials Direct labor Distribution The company will also be absorbing $120,000 of additional fixed-costs associated with this new product. A corporate fixed charge of $20,000 currently absorbed by other products will be allocated to this new product. 4.00 .75 If the selling price is $14 per unit, calculate its break-even point

Answer rating: 100% (QA)

To calculate the breakeven point we need to determine the total contribut... View the full answer