Carla Vista Industries sells two electrical components with the following characteristics. Fixed costs for the company are $168,000 per year.

		XL-709		CD-918
Sales price		$27		$42
Variable cost		23		34
Sales volume		72,000 units		180,000 units

(a)

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How many units of each product must Carla Vista Industries sell in order to break even? (Round answers to 0 decimal places, e.g. 5,275.)

		XL-709		CD-918
Break even units		enter break even units		enter break even units

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Attempts: 3 of 4 used

(b)

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Carla Vistas vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $31 with no impact on sales volume. What will be Carla Vistas new breakeven point in units?

		XL-709		CD-918
New Break even point in units		enter break even units		enter break even units

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Attempts: 2 of 4 used

(c)

Returning to the original information, Carla Vistas vice president of marketing believes that spending $52,080 on a new advertising campaign will increase sales of component CD-918 to 216,000 units, without affecting the sales of product XL-709. How many units of each product must Carla Vista sell to break even under this new scenario?

		XL-709		CD-918
Break even units		enter break even units		enter break even units