The Selling Price Per Unit Is $25,variable Cost Per Unit

question 185

True/False

The selling price per unit is $25,variable cost per unit $15,and fixed cost per unit is $4.When this company operates above the breakeven point,the sale of one more unit will increase net income by $6.

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Definitions:

Units

A measure of quantity or amount in business, such as items produced, sold, or in inventory.

Production Budget

An estimate of the total units that need to be produced in a period to meet expected sales demands and inventory levels.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Units Produced

denotes the total quantity of completed goods made during a specific period.