Question
The following information pertains to Rica Company. Sales (50,000 units) $1,000,000 Manufacturing costs: Variable 340,000 Fixed 70,000 Selling and admin. expenses: Variable 10,000 Fixed 60,000
The following information pertains to Rica Company.
| Sales (50,000 units) | $1,000,000 |
| Manufacturing costs: | |
| Variable | 340,000 |
| Fixed | 70,000 |
| Selling and admin. expenses: | |
| Variable | 10,000 |
| Fixed | 60,000 |
How much is Rica's break-even point in number of units?
A. 9,848
B. 10,000
C. 18,571
D. 26,000
Step by Step Solution
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Breakeven sale in units Total fixed cost Contributio...
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
