Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price Variable costs Fixed costs $ 430 per unit 190 per unit 624,000 per year Required 7. What number must Grove Audio sell annually to break even? 6. What number must Grove Audio sell to make an operating profit of $180,000 for the year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Grove Audio is considering the introduction of a new model of
wireless speakers with the following price and cost characteristics.
Sales price
Variable costs
Fixed costs
430 per unit
190 per unit
624,000 per year
Required
a. What number must Grove Audio sell annually to
break even?
b. What number must Grove Audio sell to make an
operating profit of $180,000 for the year?
Transcribed Image Text:Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price Variable costs Fixed costs 430 per unit 190 per unit 624,000 per year Required a. What number must Grove Audio sell annually to break even? b. What number must Grove Audio sell to make an operating profit of $180,000 for the year?
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