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:

Technology Spillover

It refers to the situation where innovations and improvements made by one company or country benefit others beyond the original inventor or innovator.

Emissions Taxes

Levies imposed by governments on the emission of pollutants, aimed at reducing environmental damage by making it costly to pollute.

Tradable Emissions Permits

Tradable Emissions Permits are allowances to emit limited quantities of pollutants that can be bought and sold, aiming to reduce overall emissions in a cost-effective manner.

Environmental Standards

Regulations and criteria set by governments or international bodies to control the level of pollutants and manage the impact on the environment.