Question
DEF Corporation sells two products, Product A has a sales price of $35 and variable costs of $21.50 while Product B has a sales price
DEF Corporation sells two products, Product A has a sales price of $35 and variable costs of $21.50 while Product B has a sales price of $55 and variable costs of $37.5. DEF Corporation has fixed costs of $150,000.
a) Assuming a sales mix of 5 units sold of Product A for every 3 units sold of Product B, calculate how many units of each product need to be sold to achieve a profit of $50,000.
b) Assuming a sales mix of 3 units sold of Product A for every 5 units sold of Product B, calculate how many units of product need to be sold achieve a profit of $50,000.
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