Kopec Corporation Manufactures Numerous Products, One of Which Is Called

question 91

Multiple Choice

Kopec Corporation manufactures numerous products, one of which is called Delta42. The company has provided the following data about this product: Assume that the total traceable fixed expense does not change. How many units of product Delta42 would Kopec need to sell at a price of $60.50 to earn the same net operating income that it currently earns at a price of $55.00? (Round your answer up to the nearest whole number.)

• A) 122,642
• B) 154,762
• C) 134,717
• D) 144,500

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Definitions:

Total Manufacturing Cost Variance

The difference between total standard costs and total actual costs for the units produced.

Standard Costs

Predetermined costs for the manufacturing of products or services, used as target costs or bases for variance analysis.

Actual Costs

The true amounts spent on goods, services, and other charges, as opposed to estimated or budgeted costs.

Volume Variance

A financial metric that measures the difference between budgeted and actual volume of production or sales, impacting costs or revenues.