The Atlantic Company Sells a Product with a Break-Even Point

question 120

Essay

The Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000. Determine the (a) unit sales price, and (b) break-even points in sales units if the company desires a target profit of $36,000.

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Definitions:

Specific Process

A distinct method or sequence of steps designed to achieve a particular outcome in manufacturing or another operational environment.

Labor Costs

The total amount of money a business spends on employment, including wages, salaries, and benefits.

Materials

The raw substances or components used in the manufacturing or production of goods.

Hybrid Costing System

A costing system that blends elements of both job costing and process costing methods, suitable for industries that manufacture items in batches.