Question
Tableau DA 5-2: Exercise, Computing break-even, target income, and margin of safety LO C2 Our team is hired by Apple to help assess whether or
Tableau DA 5-2: Exercise, Computing break-even, target income, and margin of safety LO C2
Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model of the iPhone. Apple explains that this model continues to sell well in foreign markets but it worries that fixed costs are so large that it is difficult to earn a profit.
total fixed costs
rent-10,250,000 supervisor salaries-8,500,000
office salaries-6,000,000
Equipment deprieation- 5,350,000
property taxes-5,000,000
Variable cost per unit
Battery-10
camera-45
internal components-90
reciever-35
screen-95
speaker-25
sales price per unit
iphone 750
1. compute break-even point in units.
2.compute the units of product that must be sold to earn income 9,000,000
3.compute the dollar value of sales that must be sold to earn income of 9,000,000
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