Question
Crane Industries sells two electrical components with the following characteristics. Fixed costs for the company are $700,000 per year. XL-709 CD-918 Sales price $17 $31
Crane Industries sells two electrical components with the following characteristics. Fixed costs for the company are $700,000 per year.
| XL-709 | CD-918 | |||
|---|---|---|---|---|
| Sales price | $17 | $31 | ||
| Variable cost | 12 | 23 | ||
| Sales volume | 86,800 units | 217,000 units |
Cranes vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $20 with no impact on sales volume. What will be Cranes NEW breakeven point in units for BOTH XL and CD?
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
1285868781, 978-1285868783
