Business, 24.06.2020 04:01 maevemboucher78

MFG Manufacturing sells a product for $40 per unit. The production cost of the product is $21 per unit: direct materials of $8, direct labor of $7, variable overhead of $4 and fixed overhead of $2. The fixed overhead per unit comes from dividing $500,000 of fixed factory overhead by 250,000 units produced. In addition, MFG pays $3 for shipping each unit sold. Finally, MFG has fixed costs outside the factory (such as office building depreciation and salaries) that total $200,000 per year. Assuming breakeven in units was correctly computed to be 20,000 units, breakeven in dollars is:

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MFG Manufacturing sells a product for $40 per unit. The production cost of the product is $21 per un...

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