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:

Customer Service

The support and guidance given by a business to its customers who purchase or utilize its goods or services.

Logistics

The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption.

Marketing

The activities, strategies, and processes used to promote and sell products or services to a target audience.

Customer Profitability Analyses

The method of determining the profit margin and overall profitability of individual customers to guide business strategies.