Sutton Hot Dog Stands sells hot dogs at ballparks across Canada for $1.35.Variable costs are $1.05 per unit with fixed production costs of $90,000 per month at a level of 400,000 units.Fixed administrative costs total $30,000.Sales average 400,000 units per month, with planned production of 400,000 hot dogs.Required:
a.What are break-even unit sales under variable costing?
b.What are break-even unit sales under absorption costing if she sells everything she prepares?
c.What are break-even unit sales under absorption costing if average sales are 498,000 and planned production is changed to 500,000?
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