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AA 05-2 Comparative Analysis LO P2, A2 Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Assume
AA 05-2 Comparative Analysis LO P2, A2 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 Average selling price per unit sold Average variable cost per unit sold Total fixed costs ($ millions) Apple $ 550 per unit $ 250 per unit $ 36,000 Google $ 470 per unit $ 270 per unit $ 10,000 Required 1. Compute each company's break-even point in unit sales (Each company sells many devices at many different selling prices, and each has its own variable costs. This assignment assumes an average selling price per unit and an average cost per item.) 2. If unit sales were to decline, which company would experience the larger decline in operating profit? Required 1. Compute each company's break-even point in unit sales. (Each company sells many devices at many different selling prices, and each has its own variable costs. This assignment assumes an average selling price per unit and an average cost per item.) 2. If unit sales were to decline, which company would experience the larger decline in operating profit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute each company's break-even point in unit sales. (Each company sells many devices at many different selling prices, and each has its own variable costs. This assignment assumes an average selling price per unit and an average cost per item.) (Enter your answers in thousands (000) units.) Apple Google Break-even point in units (000's) Complete this question by entering your answers in the tabs below. Required 1 Required 2 If unit sales were to decline, which company would experience the larger decline in operating profit? es Decline in operating profit is more for than for as units sales decline
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