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A computer accessories company sells storage drives and power adapters. For budgeting purposes, it is assumed that for every 1 storage drives sold, 9
A computer accessories company sells storage drives and power adapters. For budgeting purposes, it is assumed that for every 1 storage drives sold, 9 power adapters will be sold. Below is a budget for the coming month. It assumes selling prices of 69 per storage drive, and 18 per power adapter. The respective variable costs are 10 and 1. Storage Adapters Total Unit sales 7,000 63,000 70,000 Revenue 483,000 1,134,000 1,617,000 70,000 63,000 133,000 Variable costs Contribution 413,000 1,071,000 1,484,000 296,800 Fixed costs Operating profit 1,187,200 Requirement Using the equation method, calculate the break even point. Complete the equation below. Assume 1A is the number of storage drives to be sold to break even, with 9A the number of power adapters. (Complete the answer boxes.) ( 1A + 9A)-( 1A+ 19A) - =
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