Oriole Industries sells two electrical components with the following characteristics. Fixed costs for the company are $ 364,000 peryear.XL-709CD-918Sales price$ 35$ 48Variable cost2940Sales volume98,000 units245,000 units Returning to the original information, Oriole's vice president of marketing believes that spending $ 76,100 on a new advertisingcampaign will increase sales of component CD-918 to 294,000 units, without affecting the sales of product XL-709. How manyunits of each product must Oriole sell to break even under this new scenario?XL-709CD-918Break even units

Break-even point represents the situation where the company does not earn income nor incur losses.

Oriole Industries sells two electrical components with the following characteristics. Fixed costs for the company are $ 364,000 per year. XL-709 CD-918 Sales price $ 35 $ 48 Variable cost 29 40 Sales volume 98,000 units 245,000 units

Oriole Industries sells two electrical components with the following characteristics. Fixed costs for the company are $ 364,000 per year. XL-709 CD-918 Sales price $ 35 $ 48 Variable cost 29 40 Sales volume 98,000 units 245,000 units

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 17MCQ: Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard...

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Question

Oriole Industries sells two electrical components with the following characteristics. Fixed costs for the company are $ 364,000 per
year.
XL-709
CD-918
Sales price
$ 35
$ 48
Variable cost
29
40
Sales volume
98,000 units
245,000 units

Returning to the original information, Oriole's vice president of marketing believes that spending $ 76,100 on a new advertising
campaign will increase sales of component CD-918 to 294,000 units, without affecting the sales of product XL-709. How many
units of each product must Oriole sell to break even under this new scenario?
XL-709
CD-918
Break even units

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