Use the following information to answer questions
Reliable Furniture manufactures recliners selling for $500 each. Variable costs per unit are $175 for direct material, $125 for direct labor, $35 for variable production overhead, and $15 for variable selling and administrative costs. Annual fixed costs are $200,000 for production overhead and $100,000 for selling and administrative costs. The company applies fixed production overhead to recliners based on a capacity of 20,000 units per year.
-Reliable Furniture's break-even point is
A) 2,000 units.
B) 2,581 units.
C) 600 units.
D) 1,819 units.
E) none of the above.
Correct Answer:
Verified
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