5- XYZ electric company manufactures a number of electric products. Rechargeable light is one of the XYZ's products that sells for $180 per unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Answer the following questions: a) Compute break-even point of the company in units. b) Compute break-even point of the company in dollars. c) Compute the number of rechargeable lights to be sold to earn a net operating income of $189,000 per month

5- XYZ electric company manufactures a number of electric products. Rechargeable light is one of the XYZ's products that sells for $180 per unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Answer the following questions: a) Compute break-even point of the company in units. b) Compute break-even point of the company in dollars. c) Compute the number of rechargeable lights to be sold to earn a net operating income of $189,000 per month

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5- XYZ electric company manufactures a number of electric
products. Rechargeable light is one of the XYZ's products that
sells for $180 per unit. Total fixed expenses related to
rechargeable electric light are $270,000 per month and variable
expenses involved in manufacturing this product are $126 per
unit. Answer the following questions:
a) Compute break-even point of the company in units.
b) Compute break-even point of the company in dollars.
c) Compute the number of rechargeable lights to be sold to earn a
net operating income of $189,000 per month

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