8. what is the companies break even point in the unit sales? 9. What would have been the company’s variable costing net operating income if it had produced and sold 55,000 units Required information[The following information applies to the questions displayed below.]Diego Company manufactures one product that is sold for $78 per unit. The following information pertains to thecompany's first year of operations in which it produced 60,000 units and sold 55,000 units.Variable costs per unit:Manufacturing:Direct materialsDirect labourVariable manufacturing overheadVariable selling and administrativeFixed costs per year:Fixed manufacturing overheadFixed selling and administrative expensesSASA28126. What is the company's net operating income (loss) under absorption costing?82223$1,260,000$ 654,000 !Required information[The following information applies to the questions displayed below.]Diego Company manufactures one product that is sold for $78 per unit. The following information pertains to thecompany's first year of operations in which it produced 60,000 units and sold 55,000 units.Variable costs per unit:Manufacturing:Direct materialsDirect labourVariable manufacturing overheadVariable selling and administrativeFixed costs per year:Fixed manufacturing overheadFixed selling and administrative expenses$$$$Variable costing net operating income (loss)8223Absorption costing net operating income (loss)28127. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?$1,260,000$ 654,000Difference of Variable Costing and Absorption Costing Net Operating Incomes

The point of sales revenue, where fixed costs equal to the fixed cost, is said to be break even…

Answered: what is the companies break even point…

what is the companies break even point in the unit sales? 9. What would have been the company’s variable costing net operating income if it had produced and sold 55,000 units

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 4MCQ

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Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22
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