2024 – Dillon Jones and Kline Ltd is studying the acquisition of two electrical
2024 – Dillon Jones and Kline Ltd is studying the acquisition of two electrical.
4 accounting calculations – 2024
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Dillon, Jones, and Kline, Ltd. is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. |
>modelModel A: |
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Variable costs, $8.00 per unit |
> annual fixed costsAnnual fixed costs, $1,971,200 |
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Model B: |
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Variable costs, $6.40 per unit |
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Annual fixed costs, $2,227,200 |
5 percent sales commissionThe selling price is $32 per unit for the universal gismo, which is subject to a 5 percent sales commission. (In the following requirements, ignore income taxes.) |
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1. |
Round intermediate calculationsHow many units must the company sell to break even if Model A is selected? (Do not round intermediate calculations.) |
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