Assume Total Fixed Costs of $160,000,variable Costs Per Unit of $6

question 58

Multiple Choice

Assume total fixed costs of $160,000,variable costs per unit of $6, and contribution margin per unit of $4. How many units must be sold to meet a target net income of $50,000, assuming a tax rate of 20%?

• A)55,625
• B)52,500
• C)50,000
• D)35,000

Differentiate between period costs and product costs.

Determine manufacturing overhead and its components.

Calculate direct costs and prime costs in manufacturing and service departments.

Recognize the importance of the relevant range in cost behavior analysis.