Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The Standard model has a selling price per unit and variable cost per unit of $8,000 and $3,000 respectively. The Turbo model has a selling price per unit and variable cost per unit of $12,000 and $5,000 respectively. The company currently has a sales mix of 4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $510,000, how many units of Turbo should be sold to achieve breakeven? O a. 25 O b. 50 O c. None of the given answers O d. 60 O e. 30
Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The Standard model has a selling price per unit and variable cost per unit of $8,000 and $3,000 respectively. The Turbo model has a selling price per unit and variable cost per unit of $12,000 and $5,000 respectively. The company currently has a sales mix of 4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $510,000, how many units of Turbo should be sold to achieve breakeven? O a. 25 O b. 50 O c. None of the given answers O d. 60 O e. 30
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The
Standard model has a selling price per unit and variable cost per unit of $8,000 and $3,000 respectively. The Turbo
model has a selling price per unit and variable cost per unit of $12,000 and $5,000 respectively. The company currently
has a sales mix of 4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $510,000, how many units of
Turbo should be sold to achieve breakeven?
O a. 25
O b. 50
None of the given answers
O d. 60
O e.
30](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92fb513c-5554-43a0-9e72-a762404859c6%2F36c19127-af0b-40dc-b21c-be1b4154f2b9%2Fc8m10ir_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The
Standard model has a selling price per unit and variable cost per unit of $8,000 and $3,000 respectively. The Turbo
model has a selling price per unit and variable cost per unit of $12,000 and $5,000 respectively. The company currently
has a sales mix of 4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $510,000, how many units of
Turbo should be sold to achieve breakeven?
O a. 25
O b. 50
None of the given answers
O d. 60
O e.
30
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