7. Both Apple and Google sell electronic devices, and each of these companies has a...
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Accounting
7. Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Assume the following data are available for both companies.
|
| Apple | |
| Average selling price per unit sold | $550 per unit | $470 per unit |
| Average variable cost per unit sold | $250 per unit | $270 per unit |
| Total fixed costs ($ millions) | $36,000 | $10,000 |
a) Compute each companys break-even point in unit sales.
b) If unit sales were to decline, which company would experience the larger decline in operation profit. Explain your answer. (Minimum 45 words)
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