Question 1 In September, Bonita Company had the following financial statement amounts related to...
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Accounting
Question 1
In September, Bonita Company had the following financial statement amounts related to producing 400 units:
| Direct materials | $25000 |
| Depreciation expense | 11000 |
| Sales revenue | 99000 |
| Direct labour | 24000 |
| Rent expense | 29000 |
What is the break-even point in units, rounded to the nearest whole number?
25 units
125 units
150 units
320 units
Question 2
Bramble Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $10 of variable costs to make. During April, 1300 drives were sold. Fixed costs for April were $3 per unit for a total of $3900 for the month. If variable costs decrease by 20%, what happens to the break-even level of units per month for Bramble Company?
It is 20% higher than the original break-even point.
It decreases about 65 units.
It decreases about 78 units.
It depends on the number of units the company expects to produce and sell.
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