Burns Corporation
Information Relating to the Current Operations of Burns $\$ 120,000$

question 29

Essay

Burns Corporation
Information relating to the current operations of Burns Corporation follows:
Sales                                                                         $\$ 120,000$
Variable costs                                                          $\underline{(36,000)}$
Contribution margin                                                  $84,000
Fixed costs                                                            $\underline{(70,000)}$
Profit before taxes                                                  $\underline{\$14,000}$
Refer to Burns Corporation.Burns's break-even point was 1,000 units.Compute Burns's sales price per unit.

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Definitions:

Direct Labor Hours

The total number of hours worked by employees directly involved in the production of goods or services.

Purchase Orders

Documents issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services.

Clerical Activity

Administrative tasks related to the processing and maintenance of paperwork, data entry, and other office duties.

Property Taxes

Taxes imposed by local governments on property owners based on the assessed value of their property, including land and structures.