What is the budgeted breakeven sales volume (to the nearest unit)?

A division manufacturing a single product which sells for $325 has the following unit cost structure:

$

Direct materials95

Directlabor78

Variable overheads56

Share of fixed costs45

Total cost274

In the coming period, the budgeted production volume is 10,000 units.

What is the budgeted breakeven sales volume (to the nearest unit)?
A . 1,385 units
B . 4,688 units
C . 8,824 units
D . 10,000 units

View Answer

Answer: B