Rosewood Company Sells Wooden Carvings for $300 Each

Multiple Choice

Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and the direct labor is 2 hours at a rate of $26 per hour. Manufacturing overhead is applied on the basis of labor hours at a rate of $36 per hour. Rosewood makes and sells 1,000 units per period. How many units must Rosewood sell to breakeven?

A) 409 units
B) 450 units
C) 240 units
D) 818 units