New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    If Selling Price is 9 per unit, variable cost is 5 per

    unit and fixed O/H absorption rate is 1.5 per unit, what is the break even point in Qty if the budgeted units are 1,00,000. Fixed O/H expenditure variance is 0.
    A 25000 Correct Answer Incorrect Answer
    B 37500 Correct Answer Incorrect Answer
    C 50000 Correct Answer Incorrect Answer
    D 12500 Correct Answer Incorrect Answer
    E 30000 Correct Answer Incorrect Answer

    Solution

    BE Qty = Fixed Cost/ Contribution per unit = 100000*1.5/4 = 37500 units

    Practice Next