Question
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
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. Apple Google Average selling price per unit sold $ 550 per unit $ 470 per unit Average variable cost per unit sold $ 250 per unit $ 270 per unit Total fixed costs ($ millions) $ 36,000 $ 10,000 Required 1. Compute each companys 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?
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