Compute the break-even point in units under variable costing

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Cincinnati Cylinder Company began operations on January 1 to produce Absorption and pneumatic cylinders used in a variety of machines. It used an absorption Variable Costing; costing system with a planned production volume of 100,000 units. During its CVP Analysis first year of operations, 100,000 units were produced and there were no fixed selling or administrative expenses. Inventory on December 31 was 20,000.

Required:

Problem 1: If Cincinnati Cylinder Company had used variable costing, its operating income would have been $440,000. Compute the break-even point in units under variable costing.

Reference no: EM132660175

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