Question
[The following information applies to the questions displayed below.] Dillon, Jones, and Kline, Ltd. is studying the acquisition of two electrical component insertion systems for
[The following information applies to the questions displayed below.] Dillon, Jones, and Kline, Ltd. 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 A: Variable costs, $17.00 per unit Annual fixed costs, $985,800 Model B: Variable costs, $10.80 per unit Annual fixed costs, $1,113,900 The selling price is $61 per unit for the universal gismo, which is subject to a 5 percent sales commission. (In the following requirements, ignore income taxes.)
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1. | How many units must the company sell to break even if Model A is selected? (Do not round intermediate calculations and round final answer up to nearest whole number.)
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