question_answer

Information concerning A Ltd's single product is as follows Selling price ` 6 per unit, Variable production cost ` 1.20 per unit, Variable selling cost ` 0.40 per unit, Fixed production cost ` 4 per unit, Fixed selling cost ` 0.80 per unit. Budgeted production and sales for the year are ` 10000 units. What is the company’s breakeven point?

A)                                  8000 units                                

B)  8333 units

C)  10000 units                              

D)  10909 units