Use the Following Information for the Next 4 Questions

question 62

Multiple Choice

Use the following information for the next 4 questions.
SXF Corporation sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:

-Point A is best described as

• A) Fixed cost
• B) Margin of safety
• C) Estimated profit at actual volume
• D) Breakeven point

---

Definitions:

Activity Cost Pools

Groupings of individual costs, driven by the same cost drivers, used in activity-based costing to allocate costs more precisely to products or services.

Departmental Overhead Rates

Calculated rates used to allocate overhead costs to specific departments or units within a business.

Machine Hours

A measure of the amount of time a machine is operated, used in assessing cost or efficiency in production.

Manufacturing Cost

The total expense incurred in the process of producing a product, including direct materials, direct labor, and manufacturing overhead.