Required Information [The following information applies to the questions displayed below.) Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model no. 6754 Variable costs, $18.00 per unit Annual fixed costs, $986,400 Model no. 4399 Variable conta, $10.80 per unit Annual fixed costs, 51,114.400 Corrigan's selling price is $68 per unit for the universal gismo, which is subject to a 15 percent sales commission. In the following requirements, Ignore income taxes.) 2-a. Calculate the net Income of the two systems if sales and production are expected to average 45,000 units per year. Net Income Model No. 6754 Model No 4399 ! Required Information [The following information applies to the questions displayed below.) Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model no. 6754 Variable costs, $18.00 per unit Annual fixed costs, $986,400 Model no. 43991 Variable conto, $10.00 per unit Annual fixed conta, $1,114,400 Corrigan's selling price is $68 per unit for the universal gismo, which is subject to a 15 percent sales commission. In the following requirements, Ignore income taxes.) 3. Assume Model 4399 requires the purchase of additional equipment that is not reflected in the preceding figures. The equipment will cost $410,000 and will be depreciated over a five-year life by the straight-line method. How many units must Corrigan sell to earn $964,000 of income if Model 4399 is selected? As in requirement 2, sales and production are expected to average 45,000 units per year. (Do not round intermediate calculations and round your final answer up to nearest whole number.) Required sales units Required Information [The following information applies to the questions displayed below.) Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model no. 67541 Variable conte, $10.00 per unit Annual fixed coat, $986, 400 Model no. 43991 Variable conta, $10.00 per unit Annual fixed costs, $1,114,400 Corrigan's selling price is $68 per unit for the universal gismo, which is subject to a 15 percent sales commission. In the following requirements, Ignore income taxes) 4. Ignoring the information presented in part 3, at what volume level will the annual total cost of each system be equal? (Do not round Intermediate calculations and round your final answer up to nearest whole number.) Volume level units
