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The sales manager of Trisha's Global Marketing (TGM) is considering expanding sales by taking their Original Widget and modifying it for export into the European
The sales manager of Trisha's Global Marketing (TGM) is considering expanding sales by taking their Original Widget and modifying it for export into the European and Asian markets. Various changes will be made to enhance the product's appeal to local tastes. The information in the table has been assembled by the sales and production departments. The common fixed costs associated with the manufacture of these three products are $2,200,000 per year and TGM has a marginal tax rate of 25%. In FY2023 TGM sold 110,000 units of the Original; 70,000 units of the Euro and 20,000 units of the Pacific. For FY2024, TGM anticipates a change in import tariffs that will increase the variable cost of the Euro product by $2.00 per unit. TGM is also planning for total units sales to increase by 5% in FY2024, but expects the sales mix to equal the FY2023 actual results. No other changes from FY2023 are anticipated, what is the total number of units required to break-even for FY2024? The sales manager of Trisha's Global Marketing (TGM) is considering expanding sales by taking their Original Widget and modifying it for export into the European and Asian markets. Various changes will be made to enhance the product's appeal to local tastes. The information in the table has been assembled by the sales and production departments. The common fixed costs associated with the manufacture of these three products are $2,200,000 per year and TGM has a marginal tax rate of 25%. In FY2023 TGM sold 110,000 units of the Original; 70,000 units of the Euro and 20,000 units of the Pacific. For FY2024, TGM anticipates a change in import tariffs that will increase the variable cost of the Euro product by $2.00 per unit. TGM is also planning for total units sales to increase by 5% in FY2024, but expects the sales mix to equal the FY2023 actual results. No other changes from FY2023 are anticipated, what is the total number of units required to break-even for FY2024
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