Problem-kilihea corporation produces a single product the, Ask an Expert

Accounting

Problem-

Kilihea Corporation produces a single product. The company's absorption costing income statement for July follows:

Kilihea Corporation Income Statement For the month ended July 31
Sales (14,500 units)	$710,500
Cost of goods sold	443,700
Gross margin	266,800
Selling and administrative expenses:
Fixed	130,500
Variable	72,500
Total selling and administrative expense	203,000
Net operating income	$ 63,800

The company's variable production costs are $22.60 per unit and its fixed manufacturing overhead totals $122,600 per month. The break-even point in units for the month under variable costing is

a. 8,177 units

b. 10,077 units

c. 11,827 units

d. 8,977 units

Additional Requirement-

The problem belongs to Basic Accounting and it discusses about calculation of break-even point in units for the month.

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Accounting Basics, Accounting

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