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Breakeven sales in units -variable and absorption costing

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Total fixed manufacturing overhead - $180,000
Total other fixed expenses - $200,000
Total variable manufacturing expenses - $120,000
Total other variable expenses - $120,000
Units produced - 30,000 units
Budgeted production - 30,000 units
Units sold - 25,000 units
Selling price - $40

1.What are breakeven sales in units using variable costing?
2.What are breakeven sales in units using absorption costing?

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Solution Summary

The solution explains how to calculate the breakeven sales in units under variable and absorption costing

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Breakeven sales is when the total revenue = total cost

1.What are breakeven sales in units using variable costing?

Breakeven sales under variable costing is given as
Breakeven units = Fixed cost/unit contribution margin
Fixed cost = 180,000+200,000=380,000
Total ...

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