1. A company sells three products X, Y and Z. In 2019 the quantity sold, sales revenue, total variable costs products were:

	Products
	X	Y	Z
Quantity	8,000	9,000	13,000
Sales Revenue	1,200,000	630,000	1,300,000
Variable cost	640,000	360,000	780,000

Fixed costs were $405,000.

Required: (350 words)

1. Compute the breakeven sales (units). Prove your answer.
2. Calculate the sales (in units) required to earn a target profit $607,500. Prove your answer.
3. Calculate the reduction needed in the fixed costs to break even at 4,500 units, in case the selling price increased by 20% and the variable cost increased by 10% for the three products.