Xi-Tech,Inc Required:
(A)How Many Units Must Xi-Techsell to Break Even?
(B)How

question 136

Essay

Xi-Tech,Inc.is considering the introduction of a new music player with the following price and cost characteristics:
$$\begin{array} { | l | r | l | } \hline \text { Sales price } & \$ 125 & \text { each } \\\hline \text { Variable costs } & 75 & \text { each } \\\hline \text { Fixed costs } & 180,000 & \text { peryear } \\\hline\end{array}$$
Required:
(a)How many units must Xi-Techsell to break even?
(b)How many units must Xi-Techsell 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:

Moderately Complex

Describes tasks, systems, or problems that are somewhat challenging but not excessively difficult to understand or deal with.

PASS Method

An acronym used in fire safety training standing for Pull, Aim, Squeeze, and Sweep, relating to the use of fire extinguishers.

Chemical Hygiene Plan

A document outlining procedures, equipment, personal protective equipment, and work practices designed to minimize exposure to hazardous chemicals.

Quality Assurance

The systematic process of ensuring that products and services meet specified requirements and standards.