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
How many units of each product must Oriole Industries sell in order to break even? (Round answers to 0 decimal places, e.g.
5,275.)
XL-709
CD-918
Break even units
Transcribed Image Text:How many units of each product must Oriole Industries sell in order to break even? (Round answers to 0 decimal places, e.g. 5,275.) XL-709 CD-918 Break even units
Expert Solution
Step 1

The Break-even point is a technique used by the management to take decisions. It helps to know how many units should be sold out to recover the cost.

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