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1. Montgomery Corp sells two products. Product A sells for $200 per unit, and has unit variable costs of $150. Product B sells for $50

1. Montgomery Corp sells two products. Product A sells for $200 per unit, and has unit variable costs of $150. Product B sells for $50 per unit, and has unit variable costs of $20. Currently, Montgomery sells three unity of product B for every two units of product A sold. Montgomery has fixed costs of $760,000. What is Montgomery's break-even point in units?

a.

20,000 units of A and 20,000 units of B

b.

12,000 units of A and 8,000 units of B

c.

8,000 units of A and 12,000 units of B

d.

10,000 units of A and 10,000 units of B

2. Montgomery Corp sells two products. Product A sells for $200 per unit, and has unit variable costs of $150. Product B sells for $50 per unit, and has unit variable costs of $20. Currently, Montgomery sells three units of product B for every two units of product A sold. Montgomery has fixed costs of $760,000. How many units would Montgomery have to sell to earn a profit of $57,000?

a.

21,500 units of A and 21,500 of B

b.

12,900 units of A and 8,600 units of B

c.

8,600 units of A and 12,900 units of B

d.

10,750 units of A and 10,750 units of B

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