1. Bearkat, INC. currently produces a single product, Aggies, which sells for $10 a unit. Bearkat's costs are $6 per unit(variable) and $24(fixed) and its income tax rate is 20%

The number of Aggies Bearkat must sell to break even is ( )

The number of Aggies Bearkat must sell to earn a profit of $16 (after taxes) is ( )

2. Bearkat is considering a new product, Horns, which will sell for $10 a unit and have a variable cost of $8 per unit. Additional fixed costs of $6 will be incurred and Bearkat feels it can sell 1 Horn for each 2 Aggies it sells.

The number of Aggies and Horns which must be sold is ( ) Aggies and ( ) Horns.