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1. Nyota Corp sells two products. Product A sells for $100 per unit, and has unit variable costs of $60. Product B sells for $70

1. Nyota Corp sells two products. Product A sells for $100 per unit, and has unit variable costs of $60. Product B sells for $70 per unit, and has unit variable costs of $50. Currently, Nyota sells three units of product B for every one unit of product A sold. Nyota has fixed costs of $750,000. How many units would Nyota have to sell to earn a profit of $250,000?

a.

30,000 units of A and 10,000 units of B

b.

40,000 units of A and 40,000 units of B

c.

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

d.

10,000 units of A and 30,000 units of B

2. Piazza Corp has sales of $400,000, a contribution margin ratio of 40%, and a profit of $40,000. If 20,000 units were sold, what is the break-even point in units?

a.

20,000

b.

15,000

c.

12,000

d.

8,000

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