Oak Corporation sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r }
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$$ Total fixed costs for the period are $456,840.The break-even point in desks is _____.
A)952 desks
B)1,228 desks
C)4,230 desks
D)5,458 desks

Question

Oak Corporation sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$$ Total fixed costs for the period are $456,840.The break-even point in desks is _____.
A)952 desks
B)1,228 desks
C)4,230 desks
D)5,458 desks

Quizplus · Accepted Answer

The Answer of Oak Corporation sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$$ Total fixed costs for the period are $456,840.The break-even point in desks is _____.
A)952 desks
B)1,228 desks
C)4,230 desks
D)5,458 desks