Xi-Tech, Inc Required:
(A) How Many Units Must Xi-Tech Sell to Break

question 51

Essay

Xi-Tech, Inc. is considering the introduction of a new music player with the following price and cost characteristics:
$$\begin{array} { l c } \text { Sales price } & \$ 125 \text { each } \\\text { Variable costs } & 75 \text { each } \\\text { Fixed costs } & 180,00 \text { per year }\end{array}$$
Required:
(a) How many units must Xi-Tech sell to break even?
(b) How many units must Xi-Tech sell to make an operating profit of $120,000 for the year?
(c) If projected sales are 7,500 units, what is the margin of safety in units?

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Definitions:

Brachial Artery

The major blood vessel of the (upper) arm that supplies blood to the arm and hand.

Venous Sinuses

Large channels in the brain that collect venous blood from the brain and lead it towards the internal jugular veins.

Cranial Cavity

The space within the skull that houses the brain, protected by the bones of the cranium.

Internal Jugular

A major vein located in the neck, which carries blood from the head, brain, face, and neck back toward the heart.