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 $25,000.

REQUIRED (show your work):

A.

What is the anticipated profit given the expected sales volume (1 pt.)?

B.

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.).

C.

If only product C were sold, how many units would be needed to break even (1 pt.)?

D.

If only product F were sold, how many units would be needed to break even (1 pt.)?

E. 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 (1 pt.)?