XYC

Company sells products both domestically and internationally. Fixed costs totaled

$4,900,000

last year. In

an effort to increase its total sales volume,

XYC

plans to spend an additional

$1,210,000

in advertising next year. Expected average prices and variable costs appear below.

	Domestic	International
Price per unit	$55	$40
Variable costs per unit	20	15

.....

Because of the increased advertising,

XYC

expects to sell

195,000

units domestically and

130,000

units internationally next year.

Requirements

(a)	Using the expected sales mix, determine the number of units that XYC must sell in each market in order to earn income of $90,000 next year.

Requirement (a) Using the expected sales mix, determine the number of units that

XYC

must sell in each market in order to earn income of

$90,000

next year.