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Gabe Industries sells two products, Basic models and Deluxe models. Basic models sell for $44 per unit with variable costs of $25 per unit. Deluxe models sell for $54 per unit with variable costs of $25 per unit. Total fixed costs for the company are $1441. Gabe Industries typically sells three Basic models for every Deluxe model. What is the breakeven point for Basic models and Deluxe models? (Round any intermediary calculations to the nearest cent and your final answers to the nearest whole unit.)
A)38 units of Basic; 25 units of Deluxe
B)25 units of Basic; 38 units of Deluxe
C)50 units of Basic; 23 units of Deluxe
D)23 units of Basic; 50 units of Deluxe
Minimum Acceptable Return
The lowest return on investment that a person or entity is willing to accept, often used in capital budgeting and investment planning.
Invested Assets
Assets that are allocated into various investment vehicles such as stocks, bonds, real estate, or other securities with the expectation of earning a return.
Operating Income
The profit realized from a business's operations, after deducting operating expenses like wages and cost of goods sold from gross profit.
Investment Turnover
A measure of a company's ability to generate sales from its investments; calculated by dividing sales by average invested assets.
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