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Pharoah Industries sells two electrical components with the following characteristics. Fixed costs for the company are $202,000 per year. XL-709 CD-918 Sales price V$30.00 $45.00

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Pharoah Industries sells two electrical components with the following characteristics. Fixed costs for the company are $202,000 per year. XL-709 CD-918 Sales price V$30.00 $45.00 Variable cost 26.00 37.00 Sales volume 40,400 units 60,600 units 80, 800 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.) 30X-8 lox-40,4000 4X-40,400 XL-709 CD-918 Break even units Pharoah's vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $34.00 with no impact on sales volume. What will be Pharoah's new breakeven point in units? 34x-abx-404106 CD-918 XL-709 Returning to the original information, Pharoah's vice president of marketing believes that spending $60,600 on a new advertising campaign' will increase sales of component CD-918 to 80,800 units, without affecting the sales of product XL-709. How many units of each product must Pharoah sell to New Break even point in units break even under this new scenario? CD-918 XL-709 The market changes referred to in part (b) indicate additional overall demand for component XL- 709. Pharoah's vice president of marketing believes that if the company spends $60,600 to advertise component XL-709 rather than CD-918, as planned in part (c), the company will be able to sell a total of 50,500.units of XL-709 at the new price of $34.00. If the company must choose to advertise only one component, which component should receive the additional $60,600 in advertising? Break even units more in since it expects to earn $ The company should advertise product operating inceme than if it advertised

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