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7. Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Assume the following data are available for

7. Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Assume the following data are available for both companies.

Apple

Google

Average selling price per unit sold

$550 per unit

$470 per unit

Average variable cost per unit sold

$250 per unit

$270 per unit

Total fixed costs ($ millions)

$36,000

$10,000

a) Compute each companys break-even point in unit sales.

b) If unit sales were to decline, which company would experience the larger decline in operation profit. Explain your answer. (Minimum 45 words)

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