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This company produces two models of electric car. Model A is a fast sports car, and model B is an affordable coupe. Use the following
This company produces two models of electric car. Model A is a fast sports car, and model B is an affordable coupe. Use the following information to answer the questions that follow.
Model A Price | $ 95,000 | per unit |
Model B Price | $ 33,000 | per unit |
Model A Variable Cost | $ 32,300 | per unit |
Model B Variable Cost | $ 15,510 | per unit |
Fixed costs | $ 16,000,000 | per month |
If the company believes that 82% of sales will be model A, how many electric cars must be sold each month to breakeven? Round up for any fractional units.?
If lowering the price of model A by $5,000 will increase its share of sales by 10%, what would monthly breakeven sales be then? Round up for fractional units.?
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