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Aspen Popular Company prepared the following absorption-costing income statement for the year ended May 31, 2017.
Aspen Popular Company prepared the following absorption-costing income statement for the year ended May 31, 2017.
Sales (8,000 units) $160,000
Cost of goods sold 108,000
Gross margin $52,000
Selling and administrative expenses 18,000
Operating income $ 34,000
Additional information follows:
Selling and administrative expenses include $1.50 of variable cost per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs
How many unit must be sold to breakeven under absorption cost and under variable costing?
