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Fern Industries manufactures and sells two products, Product A and Product B . The current product information is below. Total fixed costs are $ 1

Fern Industries manufactures and sells two products, Product A and Product B. The current product
information is below.
Total fixed costs are $1,800,000
Assuming the same sales mix as above, what was the break-even point in units for:
(a) Product A
units
(b) Product B
units
To stimulate sales next year, Fern is considering a digital marketing campaign to attract new
customers. The company estimates the total cost would be $315,000. Assuming the unit selling price
and all other costs remain the same as status quo, and that the company wants to increase current
operating income before tax by 15%, how many units of each product must Fern sell?'
(a) Product A
units
(b) Product B
units
How many units of each product would Fern need to sell if they desired an after-tax profit of
$1,750,000. Assume a 20% tax rate. IGNORE the marketing campaign in R2.
(a) Product A
units
(b) Product B
units
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