Question

The following information is given for XYZ, Corp and will be used to answer the next 7 questions

Sales price per unit                             $8.50

                                   

Direct labor per unit                           $1.90

Direct materials per unit                     $2.60

Variable overhead per unit                 $1.40

                                   

Factory overhead that does not change with volume $327,600

General and administrative expenses $194,000

Using the original contribution margin, a reduction in sales of 100 units below break even point will result in a net profit before taxes of:

Question 31 options:

	Exactly zero
	Negative $3,100
	Negative $1,400
	Negative $2,600

Answer 1