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Argo Heating Ltd

Question 31

Multiple Choice

Argo Heating Ltd. manufactures air conditioners. For 100,000 air conditioners, direct material, direct labour, and direct overhead was $2,000,000, $6,000,000, and $ 4,000,000 respectively. The air conditioners sell for $280 each. Factory rent was $400,000 and advertising was another $500,000. Management salaries totalled $2,000,000. Which of the following is the breakeven point for Argo Heating?


A) 10,357 units
B) 18,125 units
C) 24,167 units
D) 42,857 units
E) 75,000 units

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