Multiple product break-even analysis Data on the operations of Ethel John Company follow. The company produces three products and has a fixed cost of $363,000 per year. Over the years the company has been paying income taxes that average 30 percent of taxable income. The company anticipates that the income tax rate will not change this year.

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Selling price Variable cost Relative sales mix REQUIRED a. Find the break-even point in units. A B C $18 $12 $36 12 7 27 .4 .3 .3 b. Determine how many units of each product must be sold to earn a net income after taxes of $49,000.