Splurge Electronics Sells Homework Machines for $80 Each

question 5

Multiple Choice

Splurge Electronics sells homework machines for $80 each.Variable costs per unit are $45 and total fixed costs are $43,750.Splurge Electronics expects it can sell 1,500 units next year.By how many units can Splurge's sales drop before the company incurs a loss?

• A)110 units
• B)1,250 units
• C)16 units
• D)250 units

Understand gear ratios and their applications in drivetrains.

Identify the location and function of transmission coolers in vehicle cooling systems.

Grasp the relationship between gear ratios, torque, and engine performance.

Understand the role and operation of shift solenoids in automatic transmissions.

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Definitions:

Direct Labor-Hours

A measure of the time workers or employees directly spend producing goods or performing services.

Predetermined Overhead Rate

Calculated before the period begins, this rate is used to assign overhead costs to products or job orders based on an activity base.

Variable Manufacturing Overhead

Costs that fluctuate with the level of production output, such as raw materials and direct labor.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to products.