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Fabricators,Inc

question 51

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Fabricators,Inc.wants to increase capacity by adding a new machine.The fixed costs for machine A are $90,000,and its variable cost is $15 per unit.The revenue is $21 per unit.What is the break-even point for machine A?

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Definitions:

Customizing Department

A specialized section within a manufacturing operation focused on modifying products to meet specific customer requirements or preferences.

Predetermined Overhead Rate

A predetermined overhead rate is used to allocate manufacturing overhead costs to products based on a consistent formula, before the actual overhead costs are known.

Direct Labor-Hours

The cumulative hours logged by workers who are actively engaged in the production process.

Job-Order Costing System

An accounting method that assigns costs to specific jobs or batches, which helps in tracking the financial performance of particular jobs.

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