Oldman River Company expects to produce and sell 2,000 units next month.Data on costs follows:
$\begin{array}{ll}
\text { Per unit costs: } & \
\text { Selling price } & \$ 40 \
\text { Variable manufacturing costs } & \$ 10 \
\text { Variable selling costs } & \$ 6\\\text { Total costs: }\\text { Fixed manufacturing costs } & \$ 16,000 \
\text { Fixed selling costs } & \$ 8,000
\end{array}$ A. What is the break-even point in units?
B. What is the break-even point in sales doll ars?
C. What is the expected operating income for next month?
D. What is the margin of safety in dollars?

Question

Oldman River Company expects to produce and sell 2,000 units next month.Data on costs follows:
 $\begin{array}{ll}
\text { Per unit costs: } & \
\text { Selling price } & \$ 40 \
\text { Variable manufacturing costs } & \$ 10 \
\text { Variable selling costs } & \$ 6\\\text { Total costs: }\\text { Fixed manufacturing costs } & \$ 16,000 \
\text { Fixed selling costs } & \$ 8,000
\end{array}$ A. What is the break-even point in units?
B. What is the break-even point in sales doll ars?
C. What is the expected operating income for next month?
D. What is the margin of safety in dollars?

Quizplus · Accepted Answer

The Answer of Oldman River Company expects to produce and sell 2,000 units next month.Data on costs follows:
 $\begin{array}{ll}
\text { Per unit costs: } & \
\text { Selling price } & \$ 40 \
\text { Variable manufacturing costs } & \$ 10 \
\text { Variable selling costs } & \$ 6\\\text { Total costs: }\\text { Fixed manufacturing costs } & \$ 16,000 \
\text { Fixed selling costs } & \$ 8,000
\end{array}$ A. What is the break-even point in units?
B. What is the break-even point in sales doll ars?
C. What is the expected operating income for next month?
D. What is the margin of safety in dollars?

Oldman River Company Expects to Produce and Sell 2,000 Units