Herzig Industries sells two electrical components with the following characteristics. Fixed costs for the company are $200,000 per year.
| Sales price | $10.00 | $25.00 |
| Variable cost | 6.00 | 17.00 |
| Sales volume | 40,000 units | 60,000 units |
Required:
| a. | How many units of each product must Herzig Industries sell in order to break even? |
| b. | Herzig's vice president of sales has determined that due to market changes, the sales |
price of component XL-709 can be increased to $14.00 with
no impact on sales
volume. What will be Herzig's new break-even point in units?
| c. | Returning to the original information, Herzig's vice president of marketing believes |
that spending $80,000 on a new advertising campaign will increase sales of
component CD-918 to 80,000 units, without affecting the sales of product
XL-709. How many units of each product must Herzig sell to break even under
this new scenario?
The Major Components of the Limbic System
Components of the Stethoscope
Too Much Alcohol Costs You Good Nutrition
Electrical Events
A company that makes environmental measuring devices has calculated their revenue and costs as ...
Components of Human Blood