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Page of 12 7 Rowling Inc. manufactures and sells two models of luxuriously finished cutlery: Alpha and Beta. The results for the last year for
Page of 12 7 Rowling Inc. manufactures and sells two models of luxuriously finished cutlery: Alpha and Beta. The results for the last year for the two products appear below. Alpha Beta Selling price per unit $4.000 6.00 Variable expenses per unit $2.400 Number of units sold 2001 Fixed expenses per month $660 $1 20 The company has developed another product, Gamma, 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 Alpha or Beta. The variable expense would be $6 per unit. The company's fixed expenses would not change. How many units of Alpha must the company sell in order to break-even? Assume that the sales mix (with three products) would stay the same. (Choose the closest answer.) 171 C B. 168 206 210 E. None of the above
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