Required information [The following information applies to the questions displayed below.] Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model number 6754: Variable costs, $16.00 per unit Annual fixed costs, $986,300 Model number 4399: Variable costs, $11.80 per unit Annual fixed costs, $1,114,300 Corrigan's selling price is $66 per unit for the universal gismo, which is subject to a 15 percent sales commission. (In the following requirements, ignore income taxes.) Required: 1. How many units must the company sell to break even if Model 6754 is selected? Note: Do not round intermediate calculations and round your final answer up to nearest whole number.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below.]
Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for
producing its sole product, the universal gismo. Data relevant to the systems follow.
Model number 6754:
Variable costs, $16.00 per unit
Annual fixed costs, $986,300
Model number 4399:
Variable costs, $11.80 per unit
Annual fixed costs, $1,114,300
Corrigan's selling price is $66 per unit for the universal gismo, which is subject to a 15 percent
sales commission. (In the following requirements, ignore income taxes.)
Required:
1. How many units must the company sell to break even if Model 6754 is selected?
Note: Do not round intermediate calculations and round your final answer up to nearest whole number.
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model number 6754: Variable costs, $16.00 per unit Annual fixed costs, $986,300 Model number 4399: Variable costs, $11.80 per unit Annual fixed costs, $1,114,300 Corrigan's selling price is $66 per unit for the universal gismo, which is subject to a 15 percent sales commission. (In the following requirements, ignore income taxes.) Required: 1. How many units must the company sell to break even if Model 6754 is selected? Note: Do not round intermediate calculations and round your final answer up to nearest whole number.
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