Question 1 In September, Bonita Company had the following financial statement amounts related to...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Question 1
In September, Bonita Company had the following financial statement amounts related to producing 400 units:
Direct materials
$25000
Depreciation expense
11000
Sales revenue
99000
Direct labour
24000
Rent expense
29000
What is the break-even point in units, rounded to the nearest whole number?
25 units
125 units
150 units
320 units
Question 2
Bramble Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $10 of variable costs to make. During April, 1300 drives were sold. Fixed costs for April were $3 per unit for a total of $3900 for the month. If variable costs decrease by 20%, what happens to the break-even level of units per month for Bramble Company?
It is 20% higher than the original break-even point.
It decreases about 65 units.
It decreases about 78 units.
It depends on the number of units the company expects to produce and sell.
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: Flex AI - Your personal assistant for all your inquiries!
