Use the following information to determine the break-even point in units (rounded to the nearest whole unit):
|
Unit sales
|
50,000
|
Units
|
|
Unit selling price
|
$14.50
|
|
|
Unit variable cost
|
$7.50
|
|
|
Fixed costs
|
$186,000
|
|
12,828
26,571
8,455
46,667
24,800
The following information is available for a company's utility cost for operating its machines over the last four months.
|
Month
|
Machine hours
|
Utility cost
|
|
January
|
900
|
$5,450
|
|
February
|
1,800
|
$6,900
|
|
March
|
2,400
|
$8,100
|
|
April
|
600
|
$3,600
|
Using the high-low method, the estimated variable cost per unit for utilities is:
a. $3.38
b. $6.00
c. $2.50
d. $4.22
e. $6.17