If TechCor Has Fixed Costs of $60,000, Variable Costs of $1.20/unit

question 34

Multiple Choice

If TechCor has fixed costs of $60,000, variable costs of $1.20/unit, a sales price/unit of $7, and depreciation expense of $25,000, what is its cash breakeven in units?

• A) 6,034 units
• B) 11,458 units
• C) 12,375 units
• D) 45,833 units

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Definitions:

Finished Goods Inventory

The stock of completed products available for sale at the end of an accounting period.

Manufacturing Company

A business entity that engages in the production of goods using labor, machines, tools, and chemical or biological processing.

Merchandising Company

A type of company that purchases goods at wholesale prices and resells them at retail prices, making a profit from the markup.

Managerial Accounting Information

Data provided for internal use by the management of a company to facilitate decision-making and business analysis.