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A company sells only two products, Product A and Product B, and has the following cost information: Selling price per unit Product A $4 Selling

A company sells only two products, Product A and Product B, and has the following cost information:

Selling price per unit Product A $4

Selling price per unit Product B $5

Variable cost per unit Product A $2

Variable cost per unit Product B $3

Total fixed costs $840

The company sells two units of Product A for each unit it sells of Product B. The company faces an income tax rate of 30%.

A) What is the breakeven point in units for each product assuming the sales mix is 2 units of Product A for each unit of Product B?

B) What is the breakeven point if the company's income tax rate is reduced to 25%, assuming the sales mix is 2 units of Product A for each unit of Product B?

C) How many units of each product would be sold if the company desired an after-tax net income of $525, facing an income tax rate of 30%?

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