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Patota Manufacturing Incurred the Following Expenses During 2017 What Is the Breakeven Point in Units Using Absorption Costing

Question 207

Multiple Choice

Patota Manufacturing incurred the following expenses during 2017:
 Fixed manufacturing costs $120,000 Fixed nonmanufacturing costs $83,000 Unit selling price $340 Total unit cost $120 Variable manufacturing cost rate $60 Units produced 1,390 units \begin{array}{ll}\text { Fixed manufacturing costs } & \$ 120,000 \\\text { Fixed nonmanufacturing costs } & \$ 83,000 \\\text { Unit selling price } & \$ 340 \\\text { Total unit cost } & \$ 120 \\\text { Variable manufacturing cost rate } & \$ 60 \\\text { Units produced } & 1,390 \quad \text { units }\end{array}
What is the breakeven point in units using absorption costing if the units produced are actually 2,220? (Round your final answer up to the next whole unit. )


A) 997 units
B) 725 units
C) 544 units
D) 318 units

Correct Answer:

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