A manager has determined that a potential new product can be sold at a price of $33.50 each. The cost to produce the product is $26.00, but the equipment necessary for production must be leased for $160,000 per year. What is the break-even point

the break-even point in units is 21,333 units

Explanation:

The computation of the break even point in units is shown below:

Break even point in units is

= Fixed cost ÷ contribution margin per unit)

= $160,000 ÷ ($33.50 - $26)

= $160,000 ÷ $7.5

= 21,333 units

Hence, the break-even point in units is 21,333 units

And, the same is to be considered

We simply applied the above formula so that the correct units could come

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

paying attention to the details