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. 60 Oc. 30 d. None of the given answers e. 50
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. 60 Oc. 30 d. None of the given answers e. 50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
a. 25
b. 60
O c. 30
O d. None of the given answers
e. 50
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