Division charge in order to break even


Problem:

Cochrane has a division that makes wood strips for the furniture industry. The division has fixed costs of $10,000 per month, and it expects to sell 42,000 strips per month.

Required:

Question: If the variable cost per strip is $2.00, what price must the division charge in order to break even?

Note: Please provide reasons to support your answer.

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Accounting Basics: Division charge in order to break even
Reference No:- TGS0891163

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