Solve the Problem. -The Point at Which a Company's Costs Equals Its Revenue

question 92

Multiple Choice

Solve the problem.
-The point at which a company's costs equals its revenue is the break-even. C represents cost, in dollars, of x units of a product. R represents the revenue, in dollars, for the sale of x units. Find the number of units that must be produced
And sold in order to break even.

• A) 6000
• B) 545
• C) 800
• D) 12,000

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Definitions:

Direct Labor Cost

The total cost of wages for employees who work directly on the manufacturing of products or delivery of services.

Overapplied Overhead

A scenario in which the overhead costs assigned for manufacturing surpass the real overhead costs that were incurred.

Actual Overhead Costs

The real costs incurred for overhead in a specific period, as opposed to budgeted or standard overhead costs.

Jobs

Specific tasks or projects to be completed as part of the operations of a business, often referring to employment positions or work assignments.