# 22 pierce companys break even point is 12000 units

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22. Pierce Company's break-even point is 12,000 units. Its product sells for \$25 and has a\$10 variable cost per unit. What is the company's total fixed cost amount?\$250,000\$180,000\$120,000Fixed costs cannot be computed with the information provided.
23. At its \$60 selling price, Atlantic Company has sales of \$15,000, variable manufacturingcosts of \$4,000, fixed manufacturing costs of \$1,000, variable selling and administrativecosts of \$2,000 and fixed selling and administrative costs of \$1,000. What is thecompany's contribution margin per unit?
\$28\$44\$3624. Bates Company currently produces and sells 4,000 units of a product that has acontribution margin of \$5 per unit. The company sells the product for a sales price of \$20per unit. Fixed costs are \$20,000. The company has recently invested in new technologyand expects the variable cost per unit to fall to \$12 per unit. The investment is expected toincrease fixed costs by \$15,000.Afterthe new investment is made, how many units mustbe sold to break-even?
25. Mitchell Company sells its product for \$100 per unit. The company's accountant providedthe following cost information:What is the company's break-even point in units?
26. Cost objects may be:Products.Services.Departments.All of these answers are correct.
27. Cobalt Company management has identified the following cost objects:Cost Object 1: The cost of operating the finishing departmentCost Object 2: The cost of operating the factoryCost Object 3: The cost of a particular product made in JuneWith respect to these cost objectives, how would rent paid by the finishing department forstorage space be classified?
29. Cost allocation involves:
30. At the beginning of 2013, Barcroft Co. estimated that its total annual fixed overhead costswould amount to \$25,000. Further, Barcroft estimated that its volume of productionwould be 2,000 units of product. Based on these estimates, Barcroft computed apredetermined overhead rate that was used to allocate overhead costs to the productsmade in 2013. As predicted, actual fixed overhead costs did amount to \$25,000.However, actual volume of production amounted to 2,200 units of product. Based on thisinformation alone:Products were costed accurately in 2013.

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