Knothole Company sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r }
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$$ Total fixed costs for the period are $456,840.The break-even volume in dollars is _____.
A)$456,840
B)$1,573,560
C)$2,030,400
D)none of these answers is correct

Question

Knothole Company sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$$ Total fixed costs for the period are $456,840.The break-even volume in dollars is _____.
A)$456,840
B)$1,573,560
C)$2,030,400
D)none of these answers is correct

Quizplus · Accepted Answer

The Answer of Knothole Company sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$$ Total fixed costs for the period are $456,840.The break-even volume in dollars is _____.
A)$456,840
B)$1,573,560
C)$2,030,400
D)none of these answers is correct