Multiple Choice
Reese, Inc. produces pliers. Each pair of pliers sells for $8.00. Variable costs per unit total $5.60 of which $2.50 is for direct materials and $2.10 is for direct labour.
-If targeted after-tax net income is $27,000 with a 40 percent tax rate, contribution margin per unit is $0.80, and total fixed costs are $148,000, how many units must be sold to break even?
A) 218,750
B) 241,250
C) 185,000
D) 167,250
Correct Answer:
Verified
Correct Answer:
Verified
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