YPad is priced at $500 per unit and has the following cost structure: factory variable manufacturing costs per unit $100; factory fixed costs total $1,000,000; sales commissions are 10% of selling price; delivery expenses to retail stores are 5% of selling price; management salaries total $3,000,000; head office rent $200,000 per year; interest on bank loan is $50,000 per month. What is the breakeven point in units for the YPad?
A) 2,769,231 units.
B) 6,461,538
C) 6,538,462
D) 7,076,923
E) 7,384,615
Correct Answer:
Verified
Q18: A Cash budget is a document that
Q19: In which of the following aspects of
Q20: Top Printing Company has credit sales of
Q21: Which of the following best describes the
Q22: The TruGlass Bottle Company manufactures glass bottles
Q24: Timmy's Toys expects to make purchases of
Q25: Trekker Trash and Recycling is expected to
Q26: Mandrake Manufacturing had sales revenue for the
Q27: Sales for RAJ Inc. from March to
Q28: The disadvantage associated with simulations, is that
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents