Question
I am proud of You (IPY) manufacturers two unique products: Product A and Product B. For every 10 units sold, 3 units are Product
I am proud of You (IPY) manufacturers two unique products: Product A and Product B. For every 10 units sold, 3 units are Product A. IPY has total common fixed costs of $220,000. Additional information for each product is provided below: Unit selling price Unit variable cost Direct fixed costs Product A $200 $120 $35,000 Using the information provided, please answer the following information. A. How many units must be sold to break-even? B. How many of those units will be Product B? C. If 4,000 units are sold, what is the operating income? Product B $400 $280 $80,000
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