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Problem 3 SanDisk storage device manufacturer plans to produce storage devices: SanDisk-120GB and SanDisk-150GB.The machineries required to produce SanDisk-120GB costs $84,000 and SanDisk-150GB, $62,000. The
Problem 3 SanDisk storage device manufacturer plans to produce storage devices: SanDisk-120GB and SanDisk-150GB.The machineries required to produce SanDisk-120GB costs $84,000 and SanDisk-150GB, $62,000. The costs of raw materials such as electronic circuits, outer casing and production costs account to $16 for one SanDisk-120GB device and $20 for one SanDisk- 150GB device. The company plans fair pricing policy while launching these new devices. As part of that policy. SanDisk-120GB is sold at $28 per unit and SanDisk-150GB at $30 per unit. a. What is the breakeven point in units and in dollars for SanDisk-120GB? Breakeven Point (in units) Fixed cost Sales Price per unit-Variable Cost Per Unit 84000 28-16 BEP (Units) b. What is the breakeven point in units and in dollars for SanDisk-150GB? c. If the expects a sales volume of 8200 units of each type, which device should be company produce? d. At what sales volume. Profit of SanDisk-150GB be higher than Profit of SanDisk-120GB by $1000
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