Answer the Following Question(s)using the Information Below

question 127

Multiple Choice

Answer the following question(s) using the information below.Ms.Andrea Chadwick, the company president, has heard that there are multiple break-even points for every product.She does not believe this and has asked you to provide the evidence of such a possibility.Some information about the company for current year is as follows:

-What are break-even sales in units using absorption costing if the production units are actually 25,000?

• A)5,625 units
• B)6,667 units
• C)7,667 units
• D)8,847 units
• E)1,154 units

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Definitions:

Operating Cash Flow

The cash generated from a company's regular business operations, indicating its ability to generate sufficient cash to maintain operations.

Accounting Break-even Point

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Fixed Cost

are business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.