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4) 16% - XYZ Company annually sells 4000 units of product A and 6000 units of product B. Product A sells for $14 and
4) 16% - XYZ Company annually sells 4000 units of product A and 6000 units of product B. Product A sells for $14 and costs $6 to manufacture. Product B sells for $12 and costs $8 to manufacture. Fixed costs are $18,000 a) 4% - What is the net income with this sales mix b)5% How many units of A & B must be sold for the company to breakeven? c) 5% How would your answer change if the sales mix was 6000 of product A and 4000 of product B? - d) 2% - What would you recommend to management about the sales mix of product A & B ?
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