Question: Both Apple and Google sell electronic devices like phones and computers, and each of these companies has a different product mix. Required 1. Assume the
Both Apple and Google sell electronic devices like phones and computers, and each of these companies has a different product mix.
Required
1. Assume the following data are available for both companies. Compute each companys break-even point in unit sales. (Each company sells many devices at many different selling prices, and each has its own variable costs. This assignment assumes an average selling price per unit and an average cost per item.)
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Required
1. Assume the following data are available for both companies. Compute each companys break-even point in unit sales. (Each company sells many devices at many different selling prices, and each has its own variable costs. This assignment assumes an average selling price per unit and an average cost per item.)
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2. If unit sales were to decline, which company would experience the larger decline in operating profit? Explain.
Apple Google Average selling price per unit sold. Average variable cost per unit sold.. Total fixed costs ($ in millions)... $550per unt $470 per unit .. $250 per unit $270 per unit $36,000 $10,000
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