Answer the Following Questions Using the Information Below:
Mariposa Corporation

question 174

Multiple Choice

Answer the following questions using the information below:
Mariposa Corporation sells "Bigger", its only product. The following information is available for the current month:
$\begin{array}{lr}\text { Selling price per unit } & \$ 100 \\\text { Standard fixed manufacturing costs per unit } & \$ 50 \\\text { Variable selling and administrative costs per unit } & \$ 8 \\\text { Standard variable manufacturing costs per unit } & \$ 2 \\\text { Fixed selling and administrative costs } & \$ 40,000 \\\text { Units produced } & 10,000 \text { units } \\\text { Units sold } & 9,600 \text { units }\end{array}$
-What is the variable costing breakeven point in units?

• A) 833 units
• B) 5,556 units
• C) 5,838 units
• D) 6,000 units

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Definitions:

Direct Expense

Costs directly attributable to the production of goods or services, such as materials and labor.

Indirect Expense

Costs that are not directly traceable to a specific product, service, or department, but are necessary for the business to operate.

Total Direct Cost

The sum of all direct costs associated with the production of goods or the provision of services, including direct materials and direct labor.

Departments

Departments refer to distinct segments within an organization, each with specific responsibilities and roles, meant to streamline operations and improve efficiency.