Company XYZ is planning to sell 20,000 units at a price of $5 per unit during the month of December. The company has total fixed costs of $60,000. Assume a planned margin of safety of $14,000, what is the breakeven point in ($) value? Select one: O a. 26,000 O b. 46,000 O c. 40,000 O d. None of the given answers O e. 86,000
XYZ Company expects to produce and sell 15,000 units during the next year with no beginning or ending inventories. Budgeted direct material cost is $8 per unit, budgeted direct labor cost is $5 per direct labor hour, and budgeted variable manufacturing overhead is $13 per direct labor hour. Budgeted fixed manufacturing overhead cost for the year is $60,000 in total. Budgeted direct labor hours needed for the year is 30,000 hours in total. The budgeted cost of goods sold for the next year is: Select one: O a. $720,000 O b. $450,000 c. $690,000 O d. $660,000 O e. None of the given answers