The Wingo Company Sells a Single Product for $21 Per

question 21

Multiple Choice

The Wingo Company sells a single product for $21 per unit.If variable expenses are 70% of sales and fixed costs are $4,200, the break-even point in dollars will be:

• A)$6,300
• B)$14,000
• C)$4,200
• D)$6,000

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Definitions:

Assembly Labor Classifications

Categories that differentiate types of labor in an assembly environment, often based on skill, task, or department.

Activity Cost

The expenses incurred by a company to perform specific activities, such as manufacturing a product or delivering a service.

Product Engineer

A professional who designs, develops, and improves products while ensuring they meet manufacturing, cost, and marketing requirements.

Activity Costs

Activity costs refer to the expenses associated with specific activities within a company, such as production, administration, or distribution, used in activity-based costing.