Question
HerzogIndustries sells two electrical components with the following characteristics. Fixed costs for the company are $200,000per year. XL-709 CD-918 Sales price $15 $38 Variable cost
HerzogIndustries sells two electrical components with the following characteristics. Fixed costs for the company are $200,000per year.
XL-709 CD-918
Sales price $15 $38
Variable cost 10 24
Sales volume 30,000units 75,000units
Returning to the original information,Herzog's vice president of marketing believes that spending $58,500on a new advertising campaign will increase sales of component CD-918 to90,000units, without affecting the sales of product XL-709. How many units of each product mustHerzogsell to break even under this new scenario?
XL-709 CD-918
Break Even Unites ###### ######
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