Roberts Company Sells a Single Product at a Selling Price

question 50

Multiple Choice

Roberts Company sells a single product at a selling price of $55 per unit. Variable costs are $30.25 per unit and fixed costs are $113,850. Roberts Company's break-even point is?

• A)$253,000.
• B)$207,000.
• C)3,764 units.
• D)2,070 units.

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Definitions:

Machine Hours

A measure of the amount of time a machine is used in the production process, often used to allocate manufacturing overhead costs.

Assembly Department

A specific area within a manufacturing facility where components are assembled into finished goods, playing a crucial role in the production process.

Direct Labor Hours

Direct labor hours refer to the amount of time spent by workers directly manufacturing a product or providing a service.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a factory to allocate indirect costs to products uniformly.