Thompson Company Is Considering the Development of Two Products: Product

question 18

Essay

Thompson Company is considering the development of two products: Product No. 65 or Product No. 66. Manufacturing cost information follows. $\begin{array} { | l | c | c | } \hline & \text { No. } 65 & \text { No. } 66 \\\hline \text { Annual lixed costs } & \$ 220,000 & \$ 340,000 \\\hline \text { Variable cost per unit } & 33 & 25 \\\hline\end{array}$ Regardless of which product is introduced, the anticipated selling price will be $50 and Thompson will pay a 10% sales commission on gross dollar sales. Thompson will not carry an inventory of these items.
Required:
A. What is the break-even sales volume (in dollars) on product no. 66?
B. Which of the two products will be more profitable at a sales level of 25,000 units?
C. At what unit-volume level will the profit/loss on Product No. 65 equal the profit/loss on Product No. 66?

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Definitions:

Barriers

Obstacles that impede progress, communication, or achievement, which can be physical, psychological, or systemic in nature.

Communication

The act of transferring information from one place, person, or group to another.

Heartfelt Communication

A form of communication that is authentic, honest, and empathetic, aiming to build genuine connections and mutual understanding between individuals.

Gender Barrier

Obstacles that hinder individuals based on their gender from advancing in their career or personal development within professional and social contexts.