Jeff Corporation Is Having Trouble Selling Its Inventory Because of Its

question 124

Multiple Choice

Jeff Corporation is having trouble selling its inventory because of its ongoing dispute with its logistical partner.The company was not able to sell any inventory in the month of January because of the dispute.It manufactured 8,000 units in January.Jeff had no other fixed costs commitment other than fixed manufacturing costs of $100,000.It follows absorption costing.If actual production in January was equal to the denominator level,what is the amount of sales required to attain breakeven point?

• A) 1250 units
• B) 125 units
• C) 10 units
• D) 0 units

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Definitions:

Promise To Pay

A written agreement to repay a borrowed amount under specified terms.

Specific Asset

A particular identified asset, often marked for a specific use or project within a company's balance sheet.

Account

A record within financial bookkeeping that tracks financial transactions of a specific nature.

Revenue

The total earnings from goods or services sold, stemming from a company's main operational activities.