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Question: In 2016, X Company had the following selling price and per-unit variable costs:

Selling price $168.30
Direct materials 41.50
Direct labor 21.70
Variable overhead 33.00
Variable selling and administrative 14.50

In 2016, fixed overhead costs were $481,000, and fixed selling and administrative costs were $276,000.

In 2017, there are only two expected changes. Direct material costs are expected to increase by 10% per unit, and fixed selling and administrative costs are expected to decrease by $10,000. What many units must X Company sell in 2017 in order to break even round unit costs to the nearest cent?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92716719

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