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Your company manufactures appliances. You are thinking of adding a new product line called Y, which you feel you can sell for $220 per unit.
Your company manufactures appliances. You are thinking of adding a new product line called "Y", which you feel you can sell for $220 per unit. Variable material and labour costs for "Y" are estimated at $202 per unit. In addition, you feel you'll need to hire additional supervision & management for this new product line at an estimated annual cost of $178,000. Your company's tax rate is 25%. How many units must you sell per month to break even on "Y?? 1,228 units 824 units 103 units 68 units
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