Under-or over applied factory overhead-ending inventory

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Ungg corp makes a single product. each unit requires $65 of direct materials. factory overhead is applied on the basis of 90% of direct labor cost. 25% of the factory overhead is fixed. There is no under-or over applied factory overhead and company has no beginning or ending inventory. The company reports the following results for February: Number of units sold: 7000, selling price per unit: $320, manufacturing cost per unit: 160, variable selling expenses per unit: $18, total fixed selling expenses: $65800, variable administrative expenses per unit: $42, total fixed administrative expn. $320700. how many units can sales go down before the company incur a loss?

Reference no: EM131250509

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