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Blossom Industries sells two electrical components with the following characteristics. Fixed costs for the company are $160,000 per year. XL-709 CD-918 Sales price $10.00 $25.00
Blossom Industries sells two electrical components with the following characteristics. Fixed costs for the company are $160,000 per year. XL-709 CD-918 Sales price $10.00 $25.00 Variable cost 6.00 17.00 Sales volume 32,000 units 48,000 units (a) V Your answer is correct. How many units of each product must Blossom Industries sell in order to break even? (Round answers to O decimal places, e.g. 25,000.) XL-709 CD-918 Break even units 10000 15000 eTextbook and Media Attempts: unlimited(b) Your answer is correct. Blossom's vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $14.00 with no impact on sales volume. What will be Blossom's new breakeven point in units? XL-709 CD-918 New Break even point in units 800 12000 e Textbook and Media Attempts: unlimited (c) Your answer is incorrect. Returning to the original information, Blossom's vice president of marketing believes that spending $64,000 on a new advertising campaign will increase sales of component CD-918 to 64,000 units, without affecting the sales of product XL-709. How many units of each product must Blossom sell to break even under this new scenario? XL-709 CD-918 Break even units e Textbook and Media Save for Later Attempts: unlimited Submit
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