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| Teaching Since: | Apr 2017 |
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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
ABC company manufactures a single product. Estimated cost data regarding the product, and other information for the product and the company are as follows:
Â
sales price per unit
$40
Total variable production cost per unit
$22
Sales commission (computed on sales revenue)
5 %
Fixed costs and expenses:
Â
Manufacturing overhead
$5,598,720
General and administrative
$3,732, 480
Effective income tax rate
40%
Â
Compute the number of units the company must sell in the coming year in order to reach the breakeven point
Â
A.583,200Â Units
B.518,400Â Units
C.388,000Â Units
D.972,000Â Units
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