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I don't know how to solve the problem Break- Even Point with Multiple Products Taylor, Inc., produces only two products, A and B. These account

I don't know how to solve the problem

Break- Even Point with Multiple Products Taylor, Inc., produces only two products, A and B. These account for 60% and 40%of the total sales dollars of Taylor, respectively. Variable costs (as a percentage of sales dollars) are 60% for A and 85% for B. Total fixed costs are $210,000. There are no others costs.

1. Calculate the break-even point, in sales dollars.

2. Assume that Taylors fixed costs increase by 30%. What amount of sales would be required to generate net income before taxes of 10% of sales.

3. Return to the original data. Assume that Taylor is able to change its sales mix to 80% A and 20% . Calculate the new break-even point. Compare this figure with the amount calculated in requirement 1. Explain the difference.

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