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Current Attempt in Progress Oriole Industries sells two electrical components with the following characteristics. Fixed costs

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Answer #1

Answer:

Break even sales = Fixed cost / Contribution

Fixed Cost : $364,000

Contribution = Sales Price - Variable costs

Contribution XL-709 = $35 - $29 = $6

Contribution CD-918 = $48 - $40 = $8

Combined Contribution : $6 + $8 = $14

Break even Units : $364,000 / $14 = 26,000 Units

So 26,000 units of each product must be sold for break even.

*If individual sale is to be considered than :

Break Even XL-709 = $364,000 / 6 = 60,667 Units

Break Even CD-918 = $364,000 / 8 = 45,500 Units

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