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Question 6 6 3 pts EIO, Inc. sells three products. Income statement information for the t hree products for the most recent year is given
Question 6 6 3 pts EIO, Inc. sells three products. Income statement information for the t hree products for the most recent year is given below: Product A $22 Selling price per unit Product B $20 Product C $15 Costs: Variable costs $88,000 $64,000 $78,000 Advertising $12,300 $14,400 $18,900 Rent .... $11,700 $11,700 $11,700 Supervisor's salary $22,800 $26,300 $24,400 Property taxes .. $ 4,000 $ 7,000 $ 3,000 Units sold 5,000 8,000 13,000 The rent is allocated to the three products equally and the property t axes are allocated based on the square footage each product uses in the fac tory. EIO, Inc. is considering eliminating Product A. If Product A is elimin ated, the space currently being used to produce Product A can be rented out for $12,200 per year. Calculate the number of units of Product A that would need to be sold next year in order for EIO, Inc. to be economically indifferent between dro pping and keeping Product A
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