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

question 69

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 their 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:

Process Layout

An arrangement of workplace resources according to the sequence of production tasks, optimizing workflows and efficiency in manufacturing or service processes.

Long-Term Contractual Basis

Refers to agreements or commitments that extend over a prolonged period, usually exceeding one year, governing ongoing relationships or projects.

Component Parts

Individual items or pieces that are assembled with other parts to create a final product.

Office Supplies

Items and materials used in offices for conducting everyday business activities, such as pens, paper, staplers, and envelopes.