Question 5 (1 point) The breakeven point is O where fixed costs meet variable co

Question

Question 5 (1 point) The breakeven point is O where fixed costs meet variable costs where fixed and variable costs reach the upper level of the relevant range o the level of activity where all fixed costs are recovered O where total revenue equals totals costs Save Question 6 (1 point) When fixed costs are $48,000, the variable costs is $12 per unit, and the product sells for $22 psr unit, the breakeven point is O 2,182 units O 8,000 units O 4,000 units O 4,800 units save Question 7 (1 point) The following data are available for Phelps Company for a recent month:

Explanation / Answer

Answer to 5

Answer is level of activity where all fixed costs are recovered

It is a situation where all fixed cost manufacturing as well as admin are recovered from the approriate activity level.

Answer to 6 is 4800 units

Break Even Point = Fixed Cost / Contribution per unit

= 48000 / 10

= 4800 units

Contribution per unit = sale price - variable cost

= 22 - 12

= 10

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