Bosely Corporation Is in the Business of Selling Computers What Will Be the Breakeven Point If Variable Costing Is

question 121

Multiple Choice

Bosely Corporation is in the business of selling computers.The following expenses were incurred in March 2011: $$\begin{array} { l r } \text { Fixed manufacturing costs } & \$ 75,000 \\\text { Fixed nonmanufacturing costs } & \$ 35,000 \\\text { Unit selling price } & \$ 1,200 \\\text { Variable manufacturing cost } & \$ 700 \\\text { Units produced } & 1,500\end{array}$$ What will be the breakeven point if variable costing is used?

• A) 150 units
• B) 220 units
• C) 157 units
• D) 92 units

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Definitions:

Cost Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's unit cost.

Monopolist

An entity that has exclusive control over the supply of a particular product or service, and thus the power to influence the market price.

Marginal Revenue

The supplementary income earned from the sale of one extra unit of a good or service.

Pink Flamingo

a brightly colored bird known for its long legs and neck, often associated with decorative lawn ornaments in popular culture.