Oriole Industries sells two electrical components with the following characteristics. Fixed costs for the company are $ 364,000 per year. XL-709 CD-918 Sales price $ 35 $ 48 Variable cost 29 40 Sales volume 98,000 units 245,000 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Oriole Industries sells two electrical components with the following characteristics. Fixed costs for the company are $ 364,000 per
year.
XL-709
CD-918
Sales price
$ 35
$ 48
Variable cost
29
40
Sales volume
98,000 units
245,000 units
Transcribed Image Text:Oriole Industries sells two electrical components with the following characteristics. Fixed costs for the company are $ 364,000 per year. XL-709 CD-918 Sales price $ 35 $ 48 Variable cost 29 40 Sales volume 98,000 units 245,000 units
Returning to the original information, Oriole's vice president of marketing believes that spending $ 76,100 on a new advertising
campaign will increase sales of component CD-918 to 294,000 units, without affecting the sales of product XL-709. How many
units of each product must Oriole sell to break even under this new scenario?
XL-709
CD-918
Break even units
Transcribed Image Text:Returning to the original information, Oriole's vice president of marketing believes that spending $ 76,100 on a new advertising campaign will increase sales of component CD-918 to 294,000 units, without affecting the sales of product XL-709. How many units of each product must Oriole sell to break even under this new scenario? XL-709 CD-918 Break even units
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