Question

Gal Manufacturing sells a product for $50 per unit. The fixed costs are $840,000 and the unit variable costs are 60% of the unit selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $200,000 and unit variable costs will be 50% of the unit selling price. The new break-even point in sales units is Ο 41,200. Ο 41,600. Ο 42,000. Ο 33,600.

Name: gal manufacturing sells a product for 50 per unit the fixed costs are 840000 and the unit variable costs are 60 of the unit selling price as a result of new automated equipment it is anticip 81393
Uploaded: 2021-09-03T17:20:08-08:00
Duration: 2 min 4 s
Channel: Lucas Finney
Description: gal manufacturing sells a product for 50 per unit the fixed costs are 840000 and the unit variable costs are 60 of the unit selling price as a result of new automated equipment it is anticip 81393

          Gal Manufacturing sells a product for $50 per unit. The fixed costs are $840,000 and the unit variable costs are 60% of the unit
selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $200,000 and unit variable
costs will be 50% of the unit selling price. The new break-even point in sales units is
Ο 41,200.
Ο 41,600.
Ο 42,000.
Ο 33,600.

gal manufacturing sells a product for 50 per unit the fixed costs are 840000 and the unit variable costs are 60 of the unit selling price as a result of new automated equipment it is anticip 81393

Added by Alan P.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Lucas Finney

09/03/2021

Step 1

New fixed costs = Old fixed costs + Increase in fixed costs New fixed costs = $840,000 + $200,000 = $1,040,000 Show more…

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Gal Manufacturing sells a product for $50 per unit. The fixed costs are $840,000 and the unit variable costs are 60% of the unit selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $200,000 and unit variable costs will be 50% of the unit selling price. The new break-even point in sales units is Ο 41,200. Ο 41,600. Ο 42,000. Ο 33,600.