Concored manufacturing company uses an activity based costing system, sells 20,0

Question

Concored manufacturing company uses an activity based costing system, sells 20,000 units per year of Glaxo container at $ 40 each unit level activities cost $ 25 per unit, Facility costs total $ 125,000 per year additional data follow

batch size is 1,000 units at a cost of $ 2,000 per batch

product level activities consist of 500 engineering cost hours per year at $ 80 per hour

please answer All

what is Concord's annual break even point

compute Concord's expected operating income befor tax including the costs in the peceding bulleted list

what is the Concored break even quantity batch size is 1,000 unita

Explanation / Answer

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Definition of 'Breakeven Point - BEP'

1. In general, the point at which gains equal losses.

2. In options, the market price that a stock must reach for option buyers to avoid a loss if they exercise. For a call, it is the strike price plus the premium paid. For a put, it is the strike price minus the premium paid.

Also referred to as a "breakeven".
For businesses, reaching the break-even point is the first major step towards profitability.

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