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 2 units of Standard and 4 units of Turbo. Assuming total fixed costs of $475,000, how many units of Turbo should be sold to achieve breakeven? a. 60 b. 30 O C. None of the given answers O d. 50 e. 25

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 2 units of Standard and 4 units of Turbo. Assuming total fixed costs of $475,000, how many units of Turbo should be sold to achieve breakeven? a. 60 b. 30 O C. None of the given answers O d. 50 e. 25

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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. None of the given answers O b. 60 Oc. 30 O d. 50 Oe. 25 NEXT PAGE
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