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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F878cbddf-b50d-48bf-94e9-08a63eb698a6%2F443d64cf-f6ef-4751-b02c-3c06ce3d0b66%2Fe4ig5wb_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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