10. Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392,000...

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10. Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392,000 There is suffic

business accounting

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Answer 1

Answer #1

Solution:

BEP in sales per unit = VC per unit + incremental fixed cost per unit

= 6 dollars + 2.1 dollars

= 8.10

Other computation :

Variable cost per unit = 420,000 / 70,000 = 6 dollars per unit

Incremental foxed cost per unit = 6,300 / 3,000 = 2.1 dollar per unit

Answer :B) 8.10 is correct

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Answer 2

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