1) The Environmental Filter Company is planning to sell air filter systems for $3,500 per unit. Variable costs are $2,000 per unit and total fixed costs are $1,275,000. What is the dollar value of sales necessary to break even?
a. $3,000,000
b. $2,000,000
c. $2,500,000
d. $2,975,000
2) The appropriate journal entry to record the application of overhead in a job costing system involves a debit to Work in Process and a credit to:
a. Cost of Goods Sold
b. Factory Overhead
c. Cash
d. Income Summary