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Two companies are expected to have annual sales of 1,000,000 decks of playing cards next year. Estimates for next year are presented below: Company 1 Company 2 Selling price per deck $3.00 $3.00 Cost of paper per deck .62 .65 Printing ink per deck .13 .15 Labor per deck .75 1.25 Variable overhead per deck .30 .35 Fixed costs $960,000 $252,000 Given these data, which of the following responses is correct? 1) Breakeven Point in Units for Company 1 2) Breakeven Point in Units for Company 2 3) Volume in Units at Which Profits of Company 1 and Company 2 are equal
A. 533,334: 105,000: 1,180,000 B. 1) 533,334: 2) 105,000 : 3) 1,000,000 C. 1) 800,000 : 2) 420,000 : 3) 1,000,000 D. 1) 800,000: 2) 420,000 : 3) 1,180,000 |