Explore BrainMass

# Breakeven sales in units -variable and absorption costing

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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?

#### Solution Preview

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 ...

#### Solution Summary

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

\$2.19