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The Following Information Pertains to Rica Company How Much Is Rica's Break-Even Point?
A) 9,848 Units

Question 27

Multiple Choice

The following information pertains to Rica Company:
 Sales (50,000 units)  $1,000,000 Manufacturing costs:  Variable 340,000 Fixed 70,000 Selling and admin. Expenses:  Variable 10,000 Fixed 60,000\begin{array}{|l|l|}\hline \text { Sales }(50,000 \text { units) } & \$ 1,000,000 \\\hline \text { Manufacturing costs: } & \\\hline \text { Variable } & 340,000\\\hline \text { Fixed } & 70,000 \\\hline \text { Selling and admin. Expenses: } & \\\hline \text { Variable } & 10,000 \\\hline \text { Fixed } & 60,000\\\hline \end{array}
How much is Rica's break-even point?


A) 9,848 units.
B) 10,000 units.
C) 18,571 units.
D) 26,000 units.

Correct Answer:

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