The break-even quantity of output is that quantity of output, in units, that results in an EBIT equal

Write a linear cost function equation for each of the following conditions. Use y for estimated costs and X for activity of the cost driver

a. Direct manufacturing labor is $10 per hour. b. Direct materials cost $15.60 per cubic yard. c. Utilities have a minimum charge of $5,000, plus a charge of $0.30 per kilowatt-hour. d. Machine operating costs include $300,000 of machine depreciation per year, plus $100 of utility costs for each day the machinery is in operation.

Brittany Furniture manufactures two products, pillows and cushions, from a joint process. Pillows are allocated $7,000 of the total joint costs of $25,000. There are 2,500 pillows produced and 2,500 cushions produced each year

Pillows can be sold at the split-off point for $12 per unit, or they can be processed further into a deluxe pillow for additional processing costs of $8,000 and sold for $16 for each deluxe pillow. If the pillows are processed further and made into deluxe pillows, the effect on operating income would be A) $30,000 net increase in operating income. B) $2,000 net decrease in operating income. C) $2,000 net increase in operating income. D) $30,000 net decrease in operating income.