Problem:
Total fixed manufacturing overhead - $180,000
Total other fixed expenses - $200,000
Total variable manufacturing expenses - $120,000
Total other variable expenses - $120,000
Units produced - 30,000 units
Budgeted production - 30,000 units
Units sold - 25,000 units
Selling price - $40
1. What are breakeven sales in units using variable costing?
2. What are breakeven sales in units using absorption costing?