Roosevelt Corporation Has a Weighted-Average Unit Contribution Margin of $40

question 63

Multiple Choice

Roosevelt Corporation has a weighted-average unit contribution margin of $40 for its two products, Standard and Supreme.Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme.Fixed expenses are $1,800,000.How many Standards would Roosevelt sell at the break-even point?

• A)18,000
• B)27,000
• C)30,000
• D)45,000

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Definitions:

Activity-based Costing

A costing methodology that assigns costs to products or services based on the activities required to produce them, aiming to more accurately reflect the consumption of resources.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance of equipment, and factory supplies, not directly attributable to specific product units.

Activity Cost Pools

Aggregations of all the costs associated with a specific activity, used in activity-based costing to allocate costs more accurately.

Estimated Overhead Cost

This refers to the projection or forecast of indirect costs associated with manufacturing processes, not directly tied to specific units of production.