Annually, Piper Wines sells 45,000 bottles of wine. The following is the unit sales price and costs: Sales Price $20 Prime Cost $6 Manufacturing OH: -      Variable  $1     Fixed  $7 Selling & Admin costs: -      Variable $1     Fixed $3 Profit $2 What is Piper Wine's breakeven point in units?   Group of answer choices 25,000 31,500 37,500 45,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20E
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Annually, Piper Wines sells 45,000 bottles of wine. The following is the unit sales price and costs:

Sales Price $20
Prime Cost $6
Manufacturing OH:
    Variable  $1
    Fixed  $7
Selling & Admin costs:
    Variable $1
    Fixed $3
Profit $2

What is Piper Wine's breakeven point in units?

 

Group of answer choices
25,000
31,500
37,500
45,000
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