Gigondas Incorporated had the following information: Avtivity Driver Unit Variable Cost Level of Activity Driver Units Sold $20 -- Setups 1,000 40 Engineering Hours 60 1,000 Other Data: Total Fixed Cost (Conventional) $100,000 Total Fixed Cost (ABC) $50,000 Unit Selling Price $40 Suppose Gigondas could reduce setup costs by $300 per setup and could reduce the number of engineering hours needed to 900. How many units must be sold to break even in this case?
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Gigondas Incorporated had the following information:
|
Avtivity Driver |
Unit Variable Cost |
Level of Activity Driver |
|
Units Sold |
$20 |
-- |
|
Setups |
1,000 |
40 |
|
Engineering Hours |
60 |
1,000 |
|
|
|
|
|
Other Data: |
|
|
|
Total Fixed Cost (Conventional) |
$100,000 |
|
|
Total Fixed Cost (ABC) |
$50,000 |
|
|
Unit Selling Price |
$40 |
|
Suppose Gigondas could reduce setup costs by $300 per setup and could reduce the number of engineering hours needed to 900. How many units must be sold to break even in this case?
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