Next, Derek Thompson looks at the profitability report of the only product produced in the...
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Accounting
Next, Derek Thompson looks at the profitability report of the only product produced in the Chandler plant.
Product Y
Sales price
69
Variable costs
31
Overhead allocation
14
The Chandler plant currently produces 15,000 units of Product X but its maximum capacity is 38,000 units. Assume that all of the annual overhead costs of 286,000 is fixed. What is the break-even point of the Chandler plant?
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