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Acme Company purchases raw material x ( R M x ) at a cost of $ 8 . 4 0 per gallon. Acme can resell

Acme Company purchases raw material x(RMx) at a cost of $8.40 per gallon. Acme can resell RMX as is for $9.00 per gallon or it can further process RMx to make Product Z. It takes 0.80 gallons of RMX to make one unit of Product Z, which Acme can sell for $13.20 per unit. In addition to the cost of RMX, Acme incurs $3.30 of additional variable costs to make and sell one unit of Product Z. The monthly traceable fixed costs related to Product Z include $11,475 of salaries paid to Product Z production and sales managers, as well as $2,025 of depreciation expense on specialized manufacturing equipment. The specialized equipment has no resale value. How many units of Product Z does Acme need to sell each month to break-even on processing RMX into Product Z as opposed to merely reselling RMX without further processing?
4,250 units
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