Gigondas Incorporated had the following information: Avtivity Driver Unit Variable Cost Level of Activity Driver Units Sold $20 -- Setups 1,000 40 Engineering Hours 60 1,000 Other Data: Total Fixed Cost (Conventional) $100,000 Total Fixed Cost (ABC) $50,000 Unit Selling Price $40 Suppose Gigondas could reduce setup costs by $300 per setup and could reduce the number of engineering hours needed to 900. How many units must be sold to break even in this case?
Gigondas Incorporated had the following information: Avtivity Driver Unit Variable Cost Level of Activity Driver Units Sold $20 -- Setups 1,000 40 Engineering Hours 60 1,000 Other Data: Total Fixed Cost (Conventional) $100,000 Total Fixed Cost (ABC) $50,000 Unit Selling Price $40 Suppose Gigondas could reduce setup costs by $300 per setup and could reduce the number of engineering hours needed to 900. How many units must be sold to break even in this case?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Gigondas Incorporated had the following information:
|
Avtivity Driver |
Unit Variable Cost |
Level of Activity Driver |
|
Units Sold |
$20 |
-- |
|
Setups |
1,000 |
40 |
|
Engineering Hours |
60 |
1,000 |
|
|
|
|
|
Other Data: |
|
|
|
Total Fixed Cost (Conventional) |
$100,000 |
|
|
Total Fixed Cost (ABC) |
$50,000 |
|
|
Unit Selling Price |
$40 |
|
Suppose Gigondas could reduce setup costs by $300 per setup and could reduce the number of engineering hours needed to 900. How many units must be sold to break even in this case?
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