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Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $15,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $15.00 per package. Problem a. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.)
Problem b. What is the break-even point in units? (Do not round intermediate calculations. Roundup your answer to the next whole number.)
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Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
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A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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