Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Financial Accounting

Authors: Charles T Horngren, John A Elliott

9th Edition

0131479725, 978-0131479722

More Books

Students also viewed these Accounting questions