Symbiosis Company had the following information: What is the break-even point in units using ABC?

Question

Symbiosis Company had the following information:  What is the break-even point in units using ABC?

Quizplus · Accepted Answer

The break-even point in units using ABC can be calculated as follows:
Total fixed costs = $600,000
Total variable costs = $700,000
Total cost = $1,300,000
Unit cost = $1,300,000/45,000 units = $28.89 per unit
Revenue per unit = $40.00 per unit
Break-even point in units = Total fixed costs / (Revenue per unit - Unit cost)
Break-even point in units = $600,000 / ($40.00 - $28.89) = 30,000 units
Therefore, the best choice is C, as it is the only option that matches the calculated break-even point in units using ABC.

Symbiosis Company Had the Following Information: What Is the Break-Even