Utility cost for operating

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Reference no: EM13913700

Use the following information to determine the break-even point in units (rounded to the nearest whole unit):

Unit sales	50,000	Units
Unit selling price	$14.50
Unit variable cost	$7.50
Fixed costs	$186,000

12,828

26,571

8,455

46,667

24,800

The following information is available for a company's utility cost for operating its machines over the last four months.

Month	Machine hours	Utility cost
January	900	$5,450
February	1,800	$6,900
March	2,400	$8,100
April	600	$3,600

Using the high-low method, the estimated variable cost per unit for utilities is:

a. $3.38

b. $6.00

c. $2.50

d. $4.22

e. $6.17

Reference no: EM13913700

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