A specialized auto part manufacturer, XYZ Auto Parts, is bring threatened by heavy competition and is reviewing alternate pricing strategies that would help it to break-even in this tight market place. Their product currently sells for $25 per part with each unit costing $15 each for material and labor. The fixed costs are $50,000 annually. In order to break even, XYZ Auto Parts would need to sell ________ units
A specialized auto part manufacturer, XYZ Auto Parts, is bring threatened by heavy competition and is reviewing alternate pricing strategies that would help it to break-even in this tight market place. Their product currently sells for $25 per part with each unit costing $15 each for material and labor. The fixed costs are $50,000 annually. In order to break even, XYZ Auto Parts would need to sell ________ units
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 7E
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A specialized auto part manufacturer, XYZ Auto Parts, is bring threatened by heavy competition and is reviewing alternate pricing strategies that would help it to break-even in this tight market place.
Their product currently sells for $25 per part with each unit costing $15 each for material and labor. The fixed costs are $50,000 annually.
In order to break even, XYZ Auto Parts would need to sell ________ units
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