What must fixed selling and administration be

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Question - X Company sells one product. The Following are the accountant's price and cost estimates for 2020:

Selling price $16.98

Direct materials 4.45

Direct Labor [All variable] 2.78

Variable overhead 3.31

Variable selling and administration 2.00

Fixed overhead $14,400

Fixed selling and administration 12,700

Unit sales in 2019 were 6,800; unit sales in 2020 are expected to be 7,300.

The accountant is uncertain about her $12,700 fixed selling and administration estimate. What must fixed selling and administration be in 2020 in order for X Company to break even?

Reference no: EM132696383

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