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Company A produces Gollum-1 for Company B Sales (13,500 units at $20 per unit) $270,000 Variable expenses (all production related) $189,000 Contribution Margin $81,000 Fixed
Company A produces Gollum-1 for Company B Sales (13,500 units at $20 per unit) $270,000 Variable expenses (all production related) $189,000 Contribution Margin $81,000 Fixed Expenses (all production related) $90,000 Net operating loss -$9000 Assume that the company has excess capacity and can produce 6750 units of new product, Gollum-2, with a selling price per unit of $15 and a variable cost per unit of $12. Given the same fixed cost, what is the volume of each product at the new break-even point
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