Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pharoah Industries sells two electrical components with the following characteristics. Fixed costs for the company are $180,000 per year. XL-709 CD-918 Sales price $10.00 $25.00
Pharoah Industries sells two electrical components with the following characteristics. Fixed costs for the company are $180,000 per year. XL-709 CD-918 Sales price $10.00 $25.00 Variable cost 6.00 17.00 Sales volume 36,000 units 54,000 units (a) Your answer is correct. How many units of each product must Pharoah Industries sell in order to break even? (Round answers to O decimal places, e.g. 25,000.) XL-709 CD-918 Break even units 11, 250 16,875 eTextbook and Media Attempts: unlimited (b) Your answer is correct. Pharoah's vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $14.00 with no impact on sales volume. What will be Pharoah's new breakeven point in units? XL-709 CD-918 New Break even point in units 9,000 13,500 eTextbook and MediaAL-709 LD-918 New Break even point in units 9.000 13,500 eTextbook and Media Attempts: unlimited (c) Returning to the original information, Pharoah's vice president of marketing believes that spending $72,000 on a new advertising campaign will increase sales of component CD-918 to 72,000 units, without affecting the sales of product XL-709. How many units of each product must Pharoah sell to break even under this new scenario? XL-709 CD-918 Break even units eTextbook and Media Save for Later Attempts: unlimited Submit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started