In the recent year 2022, a company sold 242,000 units of components at an average selling price of $47. The following information is information for the operating year 2022.

Inventory 1/1202232,600 units

Inventory 31/12202224,800 units

Fixed manufacturing costs: 1,876,800 USD

Fixed administrative costs: USD 3,284,400

Direct material cost: 13 per unit in USD

Direct labor costs: 11 per unit in USD

a) How many components did company a produce in 2022?

b) What is the zero point in units / quantity for the year 2022 if the variable costing method is used?

c) What is the zero point in units / quantity for the year 2022 if the e. absorptioncosting is used?

Due to the difficulty of suppliers supplying the company with raw materials, the company anticipates having to find a new or additional supplier. The company expects this to result in direct material costs rising to $15 per unit by 2023. The company does not expect any other changes in production in 2023.

d) What is the zero point in units / quantity for the year 2023 if the variable costing method is used?

e) What is the zero point in units / quantity for the year 2022 if the e. absorptioncosting is used?

Answer rating: 100% (QA)

Id be glad to help you with the companys production analysis and zeropoint calculations for both variable costing and absorption costing methods a Units Produced To calculate the units produced we can ... View the full answer