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
Google
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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