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Herzog Industries sells two electrical components with the following characteristics. Fixed costs for the company are $200,000 per year. XL-709 CD-918 Sales price $10.00 $25.00
Herzog Industries sells two electrical components with the following characteristics. Fixed costs for the company are $200,000 per year.
XL-709 | CD-918 | |||
Sales price | $10.00 | $25.00 | ||
Variable cost | 6.00 | 17.00 | ||
Sales volume | 40,000 units | 60,000 units |
Returning to the original information, Herzogs vice president of marketing believes that spending $60,000 on a new advertising campaign will increase sales of component CD-918 to 80,000 units, without affecting the sales of product XL-709. How many units of each product must Herzog sell to break even under this new scenario?
XL-709 | CD-918 | |||
Break even units |
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