April Industries Sells a Product with a Contribution Margin of $12

question 162

Multiple Choice

April Industries sells a product with a contribution margin of $12 per unit fixed costs of $223200 and sales for the current year of $300000. How much is April's break-even point?

• A) 13800 units
• B) $76800
• C) 18600 units
• D) 6400 units

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Definitions:

Variable Product Cost

The costs associated with producing a product that vary with the level of production, including materials and labor directly linked to the production volume.

Hard Drive

A data storage device used for storing and retrieving digital information, utilizing magnetic storage.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Cost of Goods Manufactured

The total production cost of goods completed and moved out of work-in-process inventory during a period, including labor, materials, and overhead.