Careless Company manufactures and sells sunglasses. Price and cost data are as follows: Selling price per pair of sunglasses P25.00 Variable costs per pair of sunglasses: Raw materials P11.00 Direct labor P5.00 Manufacturing overhead P2.50 Variable Selling expenses P1.30 Annual fixed costs: Manufacturing overhead P192,000 Selling and administrative P276,000 Careless Company estimates that its direct labor costs will increase 8 percent next year. How many units will Careless Company have to sell next year to reach breakeven?

Careless Company manufactures and sells sunglasses. Price and cost data are as follows: Selling price per pair of sunglasses P25.00 Variable costs per pair of sunglasses: Raw materials P11.00 Direct labor P5.00 Manufacturing overhead P2.50 Variable Selling expenses P1.30 Annual fixed costs: Manufacturing overhead P192,000 Selling and administrative P276,000 Careless Company estimates that its direct labor costs will increase 8 percent next year. How many units will Careless Company have to sell next year to reach breakeven?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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