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 absorption costing if the production units are actually 50,000? (Round any intermediary calculations to the nearest cent and your final answer up to the next whole unit.)
A) 13,142 units
B) 5,603 units
C) 7,907 units
D) 8,601 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 absorption costing if the production units are actually 50,000? (Round any intermediary calculations to the nearest cent and your final answer up to the next whole unit.)
A) 13,142 units 
B) 5,603 units 
C) 7,907 units 
D) 8,601 units

Quizplus · Accepted Answer

Breakeven units N =
 11ea1398_f0a2_f718_a1e4_61a4fc0b0b70_TB3027_00 
N = ($389,000 + $2.63N - $131,500.00)/$32.57
$32.57N = $257,500.00 + $2.63N
$29.94N = $257,500.00
N = 8,601 units

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