Answer the Following Questions Using the Information Below:
Greene Manufacturing

question 9

Multiple Choice

Answer the following questions using the information below:
Greene Manufacturing incurred the following expenses during 2015:
$$\begin{array} { l c } \text { Fixed manufacturing costs } & \$ 112,500 \\\text { Fixed nonmanufacturing costs } & \$ 87,500 \\\text { Unit selling price } & \$ 250 \\\text { Total unit cost } & \$ 100 \\\text { Variable manufacturing cost rate } & \$ 50 \\\text { Units produced } & 1,340 \text { units }\end{array}$$
-What is the breakeven point in units using absorption costing if the units produced are actually 2,250?

• A) 1,330 units
• B) 1,000 units
• C) 887 units
• D) 584 units

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Definitions:

Prime Costs

The sum of expenses for the raw materials and labor directly involved in the manufacturing of a product.

Conversion Costs

The aggregate expenditure on direct labor and manufacturing overheads used for turning raw materials into final products.

Frosting

In a culinary context, a sweet and fluffy coating or filling, usually made from sugar, butter, and flavorings, used to decorate or fill cakes and pastries. If referring to a financial term, there is no widely recognized definition fitting "frosting."

Prime Costs

The direct costs directly attributable to the production of goods, including direct materials and direct labor.