Question: Thomas Company had the following information: Activity Driver Unit Variable Cost Level of Activity Driver Units sold 20 -- Setups 1,000 80 Engineering hours 60

Thomas Company had the following information:

Activity Driver

Unit Variable Cost

Level of Activity Driver

Units sold

20

--

Setups

1,000

80

Engineering hours

60

2,000

Other data:

Total fixed costs (traditional)

800,000

Total fixed costs (ABC)

400,000

Unit selling price

40

What is the break-even point in units using ABC?

a. 15,000 units

b. 45,000 units

c. 75,000 units

d. 30,000 units

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