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Paranormal Company is considering the development of two products: no. 65 or no. 66. Manufacturing cost Information follows. Annual fixed costs Variable cost per unit
Paranormal Company is considering the development of two products: no. 65 or no. 66. Manufacturing cost Information follows. Annual fixed costs Variable cost per unit No. 65 $280,000 30 No. 66 $384,eee 22 Regardless of which product is Introduced, the anticipated selling price will be $60 and the company will pay a 10% sales commission on gross dollar sales. Paranormal will not carry an Inventory of these items. Required: A. What is the break-even sales volume (in dollars) on product no. 66? B. Which of the two products will be more profitable at a sales level of 20,000 units? C. At what unit-volume level will the profit/loss on product no. 65 equal the profit/loss on product no. 66? A Break-even sales B. Profitable at a sales level of 20.000 units: No. 65 No. 66 C. Unit-volume level units
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