Question
Sandhill Industries sells two electrical components with the following characteristics. Fixed costs for the company are $390,000 per year. XL-709 CD-918 Sales price $33 $48
Sandhill Industries sells two electrical components with the following characteristics. Fixed costs for the company are $390,000 per year.
XL-709 | CD-918 | |||
---|---|---|---|---|
Sales price | $33 | $48 | ||
Variable cost | 27 | 40 | ||
Sales volume | 46,800 units | 117,000 units |
How many units of each product must Sandhill Industries sell in order to break even? (Round answers to 0 decimal places, e.g. 5,275.)
XL-709 | CD-918 | |||
---|---|---|---|---|
Break even units | enter break even units |
|
Sandhills vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $37 with no impact on sales volume. What will be Sandhills new breakeven point in units?
XL-709 | CD-918 | |||
---|---|---|---|---|
New Break even point in units | enter break even units | enter break even units |
Returning to the original information, Sandhills vice president of marketing believes that spending $50,100 on a new advertising campaign will increase sales of component CD-918 to 140,400 units, without affecting the sales of product XL-709. How many units of each product must Sandhill sell to break even under this new scenario?
XL-709 | CD-918 | |||
---|---|---|---|---|
Break even units | enter break even units | enter break even units |
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