This paper circulates around the core theme of 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 uni together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Herzig
Industries sells two electrical components with the following characteristics.
Fixed costs for the company are $200,000 per year.
|
XL-709
|
CD-918
|
|
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 breakeven
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?
