Sheehan Co Data Are What Is the Break-Even Point in Units?
A

question 28

Short Answer

Sheehan Co data are: $\begin{array}{ll}\text { Selling price per unit } & \$ 10 \\\text { Variable cost per unit } & \$ 2 \\\text { Fixed cost of operations per year } & \$ 50000\end{array}$
What is the break-even point in units?
a. 5000
b. 25000
c. 6250
d. 62500

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Definitions:

Salaries Payable

An account that represents the amounts owed to employees for work performed that has not yet been paid.

Salary Expense

The total amount paid by a business to its employees for the work done over a specific period, often monthly or annually.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Current-Year Net Income

Current-Year Net Income is the total profit or earnings of a company for the ongoing fiscal year, after subtracting all expenses, taxes, and costs.