Required Information [The following information applies to the questions displayed below] Diego Company manufactures one

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Required Information [The following information applies to the questions displayed below] Diego Company manufactures one

Post by answerhappygod »

Required Information The Following Information Applies To The Questions Displayed Below Diego Company Manufactures One 1
Required Information The Following Information Applies To The Questions Displayed Below Diego Company Manufactures One 1 (56.45 KiB) Viewed 10 times
Required Information [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor $21 Variable manufacturing overhead Variable selling and administrative $ 10 $2 $.4 Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 1,060,000 $ 557,000 The company sold 36,000 units in the East region and 12,000 units in the West region. It determined that $270,000 of its fixed selling and administrative expense is traceable to the West region, $220,000 is traceable to the East region, and the remaining $67,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product a. What is the company's break-even point in unit sales? Break even point units b. Is it above or below the actual unit sales? O Below O Above
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply