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Oklahoma Inc, manufactures and sells two models of luxuriously finished cutleryAlvaro and Bazan. Current revenue, cost, and unit sales data for the two products appear
Oklahoma Inc, manufactures and sells two models of luxuriously finished cutleryAlvaro and Bazan. Current revenue, cost, and unit sales data for the two products appear below. | ||||
Alvaro | Bazan | |||
Selling price per unit | 4 | 6 | ||
Variable expenses per unit | 2.4 | 1.2 | ||
Number of units sold monthly | 180 | units | 100 | units |
Fixed expenses are $660 per month. |
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The company has developed another product, Cano, which the company plans to sell for $8 each. At this price, the company expects to sell 40 units per month of the product without affecting the sales of Alvaro or Bazan. The variable expense would be $6 per unit. The company's fixed expenses would not change. How many units of Alvaro must the company sell in order to break-even? Assume that the sales mix would stay the same. A. 140 B. 213 C. 319 D. 495 3. None of the above
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