Question: Splurge Electronics sells homework machines for $80 each. Variable costs per unit are $45 and total fixed costs are $43,750. Splurge is considering the purchase

Splurge Electronics sells homework machines for $80 each. Variable costs per unit are $45 and total fixed costs are $43,750. Splurge is considering the purchase of new equipment that would increase fixed costs to $55,000, but decrease the variable costs per unit by $5. At that level, Splurge Electronics expects it can sell 1,500 units next year. What is the company's break-even point in units if it purchases the new equipment, assuming the selling price remains constant?

A.	1,250 units
B.	734 units
C.	2,469 units
D.	1,375 units

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

6. Imusa Electronics sells homework machines for $80 each. Variable costs per unit are $45 and total fixed costs are $43,750. Imusa Electronics expects it can sell 1,500 units next year. By how many...

21. Splurge Electronics sells homework machines for $80 each. Variable costs per unit are $45 and total fixed costs are $43,750. Splurge is considering the purchase of new equipment that would...

Splurge Electronics sells homework machines for 80 each. Variable costs per unit are 45 and total fixed costs are 43,750. Splurge Electronics expects it can sell 1,500 units next year. By how many...

5. Imusa Electronics sells homework machines for $80 each. Variable costs per unit are $34.85 and total fixed costs are $43,750. Imusa is considering the purchase of new equipment that would increase...

Allen Company sells homework machines for $100 each. Variable costs per unit are $75 and total fixed costs are $62,000. Allen is considering the purchase of new equipment that would increase fixed...

me: te: 1. Nata Products produces Gloves. The estimated fixed costs for the year are $164,500, and the estimated variable costs per unit are $12. The company expects to produce an sell 40,000 Gloves...

1. Nata Products produces Gloves. The estimated fixed costs for the year are $164,500, and the estimated variable costs per unit are $12. The company expects to produce and sell 40,000 Gloves at a...

Nata Products produces Gloves. The estimated fixed costs for the year are $164,500, and the estimated variable costs per unit are $12. The company expects to produce and sell 40,000 Gloves at a unit...

Select with an X each item that applies to partnerships: ( ) Group of answer choices ( ) Separate, legal entity. ( ) Flow or Pass-thru entity. ( ) Form 1120. ( ) Form 1120s. ( ) Form 1065 ( ) Tax...

3. According to Kirchhoff's currents eqution, find R= ? a) 17.5 2 b) 17.2 c) 17.492 d) 17.82 704 51032

The "pull to par" occurs as the bond approaches maturity for which bonds? I. premium bonds II . par bonds III. discount bonds IV . callable bonds III. only I only IV only I and III only II only I and...

er 13 Assignment The Martin Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and...

4. Based on a message you have recently received, analyse it in relation to its three components: a. the information component, b. its relational component and c. its hierarchical component.

3. Give an example of a problem or phenomenon in everyday life where information is presented in an emotional way.

6. How can a message directly influence the interpreter?