Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 46,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense a. What is the company's break-even point in unit sales? The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed the West region, $150,000 is traceable to the East region, and the manufacturing overhead costs as long as it continues to produce any amount of its only product. Break even point units b. Is it above or below the actual unit sales? $ 25 $20 $2 $4 < Prev $ 644,000 $ 388,000

Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 46,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense a. What is the company's break-even point in unit sales? The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed the West region, $150,000 is traceable to the East region, and the manufacturing overhead costs as long as it continues to produce any amount of its only product. Break even point units b. Is it above or below the actual unit sales? $ 25 $20 $2 $4 < Prev $ 644,000 $ 388,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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