Ms. Sophia Jones, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 2017 is as follows:

What are breakeven sales in units using variable costing? (Round any intermediary calculations to the nearest cent and your final answer up to the next whole unit.)
A) 12,404 units
B) 6,383 units
C) 11,287 units
D) 10,223 units

Question

Ms. Sophia Jones, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 2017 is as follows:

What are breakeven sales in units using variable costing? (Round any intermediary calculations to the nearest cent and your final answer up to the next whole unit.)
A) 12,404 units 
B) 6,383 units 
C) 11,287 units 
D) 10,223 units

Quizplus · Accepted Answer

Breakeven units = ($185,000 + $202,000) / ($42 - (290,000 / 70,000) - (250,000 / 70,000)) = 11,287 units

Ms Sophia Jones, the Company President, Has Heard That There