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II [10 pts] For these three products, what is the gross margin per unit, and the break-even volume in units? Product Price/unit Var cost/unit Fixed

II [10 pts] For these three products, what is the gross margin per unit, and the break-even volume in units?

Product Price/unit Var cost/unit Fixed costs $GM/unit BE volume

A $5.50 $2.25 $7,250,000

B $1,150 $885 $10,500,000

C $115 $60 $2,850,000

If it turns out these (the numbers below) are the actual volumes sold for each product, calculate the net income for each product; if any product is below break-even, calculate a new price for each product to get back to break-even at these volumes.

Product Actual Sales Volume $NI New Price?

A 2,000,000 units

B 25,000 units

C 50,000 units

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