Question
New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $360,000, and the sales mix is 20%
New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $360,000, and the sales mix is 20% MP3 players and 80% satellite radios. The unit selling price and the unit variable cost for each product are as follows:
Products Unit Selling Price Unit Variable Cost MP3 players $60 $50 Satellite radios 150 90 a. Compute the break-even sales (units) for both products combined. units
b. How many units of each product, MP3 players and satellite radios, would be sold at the break-even point?
MP3 players units Satellite radios units
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