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Techno Robots Produces a Functioning Toy Robot

question 66

Essay

Techno Robots produces a functioning toy robot.At a production and sales level of 10,000 robots,the firm has the following information:
Selling price per unit = $15
Variable costs per unit = $8
EBIT = $17,500
What is the break-even point in units for the firm?


Definitions:

Direct Labor

Workers or employees who are directly involved in the manufacturing of products or delivery of services.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Equipment Depreciation

Allocation of the cost of tangible assets over their useful lives, reflecting the decrease in the value of equipment over time.

Performance Budget Report

A document that compares actual financial performance to budgeted amounts, often highlighting efficiencies or areas that need improvement.

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