Question

Poco Industries incurred the following expenses during the current year. Using both the variable costing and...

Poco Industries incurred the following expenses during the current year. Using both the variable costing and absorption costing breakeven methods calculation the required unit sales needed for a target operating income of $104,000.

Fixed manufacturing costs

$45,000

Fixed nonmanufacturing costs

$35,000

Unit selling price

$100

Total unit cost

$40

Variable manufacturing cost rate

$20

Units produced

1,200 units

Required: (4)

a. Absorption costing units required. (3)

b. Variable costing units required.

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