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Blowfish Company produces two products, A and B, with the following characteristics: Product A Product B Selling price per unit $12 $14 Variable cost
Blowfish Company produces two products, A and B, with the following characteristics: Product A Product B Selling price per unit $12 $14 Variable cost per unit $7 $10 Expected sales (units) 9,000 5,000 Total fixed costs for the company are $25,000 1. What is the anticipated profit given the expected sales volume (1 pt.)? 2. Assuming the product mix would be the same at the break-even point, compute the break-even point (be sure to indicate the number of units of each product) (2 pts.). 3. If only product A were sold, how many units would be needed to break even (1 pt.)? 4. If only product B were sold, how many units would be needed to break even (1 pt.)? 5. f the product mix changed so that equal units of A and B were sold, what would be the new break-even point in total units (2 pts.)?
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