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Al A B f Question 2-Cost Volume Profit: C D 1 Question 2 Cost Volume Profit: 2 3 ABC Inc. sells two products, A
Al A B f Question 2-Cost Volume Profit: C D 1 Question 2 Cost Volume Profit: 2 3 ABC Inc. sells two products, A & B in equal amounts (1:1). 4 Budgeted data for the two products are shown below. 5 6 7 Product A B 8 9 10 Sales price per unit $ 60 $ 11 Variable Cost per Unit $ 42 $ 20 40 20 12 E F G H R 13 Fixed Costs ARE $1,900,000. 14 A tax rate of 20% applies. 15 16 Sales Mix: A to B is 1:1. 17 18 Required: 19 20 1. Compute the breakeven sales required in dollars and in units for each product. 21 22 2. How many units of each product need to be sold to obtain an after-tax profit of $760,000? 23 What is the total dollar amount of these sales? 24 Question 1 Question 2 Sheet1 Sheet2
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