Question
Catfish Company produces two products, C and F, with the following characteristics: Product C Product F Selling price per unit $10 $15 Variable cost per
Catfish Company produces two products, C and F, with the following characteristics:
| Product C | Product F |
Selling price per unit | $10 | $15 |
Variable cost per unit | $ 7 | $10 |
Expected sales (units) | 10,000 | 5,000 |
Total fixed costs for the company are $21,000.
REQUIRED (show your work):
| What is the anticipated profit given the expected sales volume ? |
If only product F were sold, how many units would be needed to break even ? |
If only product C were sold, how many units would be needed to break even ? |
If the product mix changed so that equal units of C and F were sold, what would be the new break-even point in total units?
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) |
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