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Question - In 2017, X Company had the following selling price and per-unit variable cost information:

Selling price $157

Variable manufacturing costs 69

Variable selling and administrative costs 26

In 2017, total fixed costs were $645,000.

In 2018, there are only two expected changes. Direct material costs are expected to decrease by $8 per unit, and fixed selling and administrative costs are expected to decrease by $20,000. What must unit sales be in order for X Company to break even in 2018?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M93128163
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