Question 23 Figure 4-6. Xeller Company makes electronic keyboards. The practice

Question

Question 23 Figure 4-6. Xeller Company makes electronic keyboards. The practice model price is $220 and variable expenses are $190. The deluxe model price is $340 and variable expenses are $250. The professional model price is $1,200 and variable expense per unit is $800. Total fixed expenses are $187,000. Generally, Xeller sells 6 practice models and 3 deluxe models for every professional model sold. Refer to Figure 4-6. What is the number of practice models sold at breakeven? Answer 850 220 180 1,320 440

Explanation / Answer

Let number of professional model sold = x x*(1200-800) + 6x*(220-190) + 3x*(340-250)=187,000 x= 220 number of deluxe models sold at breakeven = 3*220= 660 660

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