Jamie's Hot Dog Stands sells hot dogs at ballparks across Canada for $1.55. Variable costs are $1.15 per unit with fixed production costs of $80,000 per month at a level of 320,000 units. Fixed administrative costs total $25,000. Sales average 320,000 units per month, with planned production of 320,000 hot dogs.
Required:
a. What are break-even unit sales under variable costing?
b. What are break-even unit sales under absorption costing if she sells everything she prepares?
c. What are break-even unit sales under absorption costing if average sales are 399,000 and planned production is changed to 400,000?

Question

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The Answer of Jamie's Hot Dog Stands sells hot dogs at ballparks across Canada for $1.55. Variable costs are $1.15 per unit with fixed production costs of $80,000 per month at a level of 320,000 units. Fixed administrative costs total $25,000. Sales average 320,000 units per month, with planned production of 320,000 hot dogs.
Required:
a. What are break-even unit sales under variable costing?
b. What are break-even unit sales under absorption costing if she sells everything she prepares?
c. What are break-even unit sales under absorption costing if average sales are 399,000 and planned production is changed to 400,000?

Jamie's Hot Dog Stands Sells Hot Dogs at Ballparks Across