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28 Sep 2019
In 2015, X Company had the following selling price and per-unitvariable cost information:
Selling price $167.80 Direct materials 31.40 Direct labor 28.60 Variable overhead 34.60 Variable selling and administrative 28.80
In 2015, fixed overhead costs were $359,000, and fixed selling andadministrative costs were $256,000.
In 2016, there are only two expected changes. Direct material costsare expected to increase by 10% per unit, and fixed selling andadministrative costs are expected to increase by $20,000. What mustunit sales be in order for X Company to break even in 2016?
In 2015, X Company had the following selling price and per-unitvariable cost information:
Selling price | $167.80 | ||
Direct materials | 31.40 | ||
Direct labor | 28.60 | ||
Variable overhead | 34.60 | ||
Variable selling and administrative | 28.80 |
In 2015, fixed overhead costs were $359,000, and fixed selling andadministrative costs were $256,000.
In 2016, there are only two expected changes. Direct material costsare expected to increase by 10% per unit, and fixed selling andadministrative costs are expected to increase by $20,000. What mustunit sales be in order for X Company to break even in 2016?
Nestor RutherfordLv2
28 Sep 2019