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4) Mount Carmel Company sells only two products, Product A and Product B. Product A Product B Total Selling price $40 $50 Variable cost per
4) Mount Carmel Company sells only two products, Product A and Product B.
Product A | Product B | Total | |
Selling price | $40 | $50 | |
Variable cost per unit | $24 | $40 | |
Total fixed costs | $840,000 |
Mount Carmel sells two units of Product A for each unit it sells of Product B. Mount Carmel faces a tax rate of 30%. Mount Carmel desires a net after-tax income of $73,500. The breakeven point in units would be:
A) 21,750 units of Product A and 43,500 units of Product B
B) 22,500 units of Product A and 45,000 units of product B
C) 43,500 units of Product A and 21,750 units of Product B
D) 45,000 units of Product A and 22,500 units of Product B
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