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HELLA sells only two products, Product A and Product B. Product A selling price is $50 and the variable cost per unit is $30. Product
HELLA sells only two products, Product A and Product B. Product A selling price is $50 and the variable cost per unit is $30. Product B selling price is $20 and the variable cost per unit is $10.Total fixed costs is $2,110,000. HELLA sells two units of Product A for each unit it sells of Product B. Stella faces a tax rate of 40%. Stella desires a net after tax income of $54,000. The quantity in units that makes the net after tax income would be:
A) 27,500 units of Product A & 55,000 units if product B
B) 25,250 units of Product A & 50,500 units of Product B
C) 55,000 units of Product A & 27,500 units of Product B
D) 50,500 units of Product A & 25,250 units of Product B
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