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Accounting Pls help Due to the chip shortage, Intel is able to sell chips manufactured in some of their unused, older production lines. They find
Accounting Pls help
Due to the chip shortage, Intel is able to sell chips manufactured in some of their unused, older production lines. They find three chips have high demand:
Chip A | Chip B | Chip C | ||||
Price | 50 | 100 | 200 | |||
Variable costs | 20 | 35 | 50 | |||
sales mix | 50% | 30% | 20% |
Their fixed costs to reopen the plant and support this product line will cost $75 million
What is their breakeven units for each of the three products?
How much would they earn if they sold 5,000,000 chips?
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