Compute for the total variable expense assuming 3,000 units were sold 2. Calculate the total fixed expense for the year 3. Calculate break even point in units 4. Calculate break even point in dollars.

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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1. Compute for the total variable expense assuming 3,000 units were sold 2. Calculate the total fixed expense for the year 3. Calculate break even point in units 4. Calculate break even point in dollars. 
3. Clinton Company plants to sell 4,000 mowers at 500 each in the coming year. Product costs
include:
Direct Materials – 180
Direct Labor – 150
Variable Factory Overhead – 25
Total fixed factory overhead 300,200
Additional data:
Variable selling expenses is a commission of 10 per mower and fixed selling and administrative
expenses totals 40,000.
1. Compute for the total variable expense assuming 3,000 units were sold
2. Calculate the total fixed expense for the year
3. Calculate break even point in units
4. Calculate break even point in dollars.
Transcribed Image Text:3. Clinton Company plants to sell 4,000 mowers at 500 each in the coming year. Product costs include: Direct Materials – 180 Direct Labor – 150 Variable Factory Overhead – 25 Total fixed factory overhead 300,200 Additional data: Variable selling expenses is a commission of 10 per mower and fixed selling and administrative expenses totals 40,000. 1. Compute for the total variable expense assuming 3,000 units were sold 2. Calculate the total fixed expense for the year 3. Calculate break even point in units 4. Calculate break even point in dollars.
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