Tableau DA 5-2: Exercise, Computing break-even, target income, and margin of safety LO C2

Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model of the iPhone. Apple explains that this model continues to sell well in foreign markets but it worries that fixed costs are so large that it is difficult to earn a profit.

total fixed costs

rent-10,250,000 supervisor salaries-8,500,000

office salaries-6,000,000

Equipment deprieation- 5,350,000

property taxes-5,000,000

Variable cost per unit

Battery-10

camera-45

internal components-90

reciever-35

screen-95

speaker-25

sales price per unit

iphone 750

1. compute break-even point in units.

2.compute the units of product that must be sold to earn income 9,000,000

3.compute the dollar value of sales that must be sold to earn income of 9,000,000