Find the Break Even Point Given the Following Information: Total

question 19

Multiple Choice

Find the break even point given the following information: total costs: $135,000; variable costs per unit = $10; sale price per unit = $25; sales = 10,000 units.

• A) 3,000
• B) 2,333
• C) 1,667
• D) 1,886

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Definitions:

Indirect Materials

Small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it.

Variable Cost

is a cost that varies with the level of output or activity, such as raw materials or piece-rate labor.

Spending Variance

The difference between the budgeted amount of expense or revenue and the actual amount spent or received.

Activity Variance

The difference between planned activity costs and actual activity costs in managerial accounting, used for budget control and performance evaluation.