Answered

IDNLearn.com offers a comprehensive platform for finding and sharing knowledge. Get accurate and detailed answers to your questions from our dedicated community members who are always ready to help.

The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:
Maximum capacity with present facilities 11,000 units
Total fixed cost (per period) $ 851,400
Variable cost per unit $ 120.00
Sales price per unit $ 186.00
Required:
The number of units of CK74 that Ruby must sell to break- even is:________.
a. 12,900.
b. 4,577.
c. 7,095.
d. 6,050.

Sagot :

Facundobuzzettiidn

Answer:

Break-even point in units= 12,900

Explanation:

Giving the following information:

Total fixed cost (per period) $ 851,400

Variable cost per unit $ 120.00

Sales price per unit $ 186.00

To calculate the break-even point, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 851,400 / (186 - 120)

Break-even point in units= 12,900

Answer: 12900

Explanation:

From the information given, we'll first calculate the contribution per unit which will be:

= Selling price per unit - variable cost per unit

= $186 - $120

= $ 66

Then, the break even sales in units will be: = Fixed cost/Contribution per unit

= 851,400 / 66

= 12,900

Therefore, the breakeven is 12900

We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and come back for more insightful information.