In its first year of operations, Utah Utility Trailers incurred the following costs: 2,565 per...
50.1K
Verified Solution
Link Copied!
Question
Accounting
In its first year of operations, Utah Utility Trailers incurred the following costs: 2,565 per unit $180 per unit Variable production cost Variable selling and administrative cost 205,000 $85,000 For the year, the company reported the following results: Fixed production cost Fixed selling and administrative cost $450,000 (347,000) $ 103,000 Selling and administrative cost(103,000) 0 Sales ($4,500 per unit) Cost of goods sold Gross margin Operating income Use the contribution margin ratio to calculate break even point sales. a. Using the contribution margin ratio approach, compute the break-even point for this company. When required, round your answer to the nearest dollar. b. How many units did the firm produce in its first year of operations? Round your answer to the nearest whole number. units C. Provide an explanation that reconciles your result in (a) to the income statement provided above. The input in the box below will not be graded, but may be reviewed and considered by your instructor
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
