Health Equipment Sdn Bhd is considering the development of two products: no. 65 or no. 66. Manufacturing cost information follows. No 65. No 66

Annual fixed cost 220,000. 340,000.

Variable cost per unit 33 25

Regardless of which product is introduced, the anticipated selling price will be $50 and the company will pay a 10% sales commission on gross dollar sales. Paranormal will not carry an inventory of these items. Required: A. What is the break-even sales volume (in dollars) on product no. 66?

B. Which of the two products will be more profitable at a sales level of 25,000 units?

C. At what unit-volume level will the profit/loss on product no. 65 equal the profit/loss on product no. 66?