Business, 25.06.2019 19:00 Chano8523

Comprehensive review problem: break-even point; absorption and variable cost analysis shenandoah manufacturing company has a maximum productive capacity of 210,000 units per year. normal capacity is 180,000 units per year. standard variable manufacturing costs are $10 per unit. fixed factory overhead is $360,000 per year. variable selling expense is $5 per unit, and fixed selling expense is $252,000 per year. the unit sales price is $20. the operating results for the year are as follows: sales, 150,000 units; production, 160,000 units; beginning inventory, 10,000 units. all variances are written off as additions to (or deductions from) the standard cost of sales. required: 1. what is the break-even point expressed in dollar sales? $ 2. how many units must be sold to earn a net operating income of $100,000 per year? (ignore income taxes.) units

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Comprehensive review problem: break-even point; absorption and variable cost analysis shenandoah m...

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