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.
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.
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter15: Decision Analysis
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07b5ee6a-4fc5-4a92-accf-59f93f0c2829%2F5f8ebeb0-d7fc-48b3-90d3-bec33e9e7df3%2Fv9cx5fu_processed.jpeg&w=3840&q=75)
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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