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Author Question: Sutton Hot Dog Stand sells hot dogs for $1.35. Variable costs are $1.05 per unit with fixed ... (Read 71 times)

ssal

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Sutton Hot Dog Stand sells hot dogs for $1.35. Variable costs are $1.05 per unit with fixed production costs of $90,000 per month at a level of 400,000 units. Fixed administrative costs total $30,000. Sales average 400,000 units per month, with planned production of 400,000 hot dogs. 

Required: 
a.  What are breakeven unit sales under variable costing?
b.  What are breakeven unit sales under absorption costing if she sells everything she prepares?
c.  What are breakeven unit sales under absorption costing if average sales are 498,000 and planned production is changed to 500,000?


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Marked as best answer by ssal on Mar 6, 2021

connor417

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ssal

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


peter

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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