How many units would have to be sold to break even?


Question Description:

20

How many units would have to be sold to break even? 2 answers below » The following budgeted income statement was prepared by Fullton Corporation: View complete question » Sales (100 units at $100 a unit) $10,000 Cost of goods sold: Direct labor (variable) $1,500 Direct materials 1,400 Variable factory overhead 1,000 Fixed factory overhead 500 4,400 Gross margin 5,600 Selling expenses: Variable 600 Fixed 1,000 Administrative expenses: The following budgeted income statement was prepared by Fullton Corporation: Sales (100 units at $100 a unit) $10,000 Cost of goods sold: Direct labor (variable) $1,500 Direct materials 1,400 Variable factory overhead 1,000 Fixed factory overhead 500 4,400 Gross margin 5,600 Selling expenses: Variable 600 Fixed 1,000 Administrative expenses: Variable 500 Fixed 1,000 3,100 Net operating income $ 2,500 How many units would have to be sold to break even? A) 50 B) 58 C) 68 D) 75 View less » Jul 08 2014 12:38 PM

Answer

20