Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The Standard model has a selling price per unit and variable cost per unit of $8,000 and $3,000 respectively. The Turbo model has a selling price per unit and variable cost per unit of $12,000 and $5,000 respectively. The company currently has a sales mix of 4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $510,000, how many units of Turbo should be sold to achieve breakeven? O a. None of the given answers O b. 60 O c. 30 O d. 50 O e. 25

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The
Standard model has a selling price per unit and variable cost per unit of $8.000 and $3,000 respectively. The Turbo model has
a selling price per unit and variable cost per unit of $12.000 and $5.000 respectively. The company currently has a sales mix of
4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $510,000, how many units of Turbo should be sold to
achieve breakeven?
O a.
None of the given answers
O b.
60
Oc.
30
O d. 50
Oe. 25
NEXT PAGE
Transcribed Image Text:Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The Standard model has a selling price per unit and variable cost per unit of $8.000 and $3,000 respectively. The Turbo model has a selling price per unit and variable cost per unit of $12.000 and $5.000 respectively. The company currently has a sales mix of 4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $510,000, how many units of Turbo should be sold to achieve breakeven? O a. None of the given answers O b. 60 Oc. 30 O d. 50 Oe. 25 NEXT PAGE
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