J&H Inc. sells two products, Product A and Product B. The sales volume for a typical year is as follows:Product A 18,000 units and Product B 4,500 units

Assume the following sales prices and variable costs:

Product

Sales price per unit

Variable Costs per unit

A

$80

$64

B

$140

$98

Fixed costs are $424,000 per year and the tax rate is 40%. Assume the sales mix stays constant as the sales volume changes.

Required:

1. Determine the breakeven point in total units and units of each product.
2. Calculate the total breakeven point in sales dollars for Product A and Product B.
3. Assume the original facts except that the fixed costs are increased to $466,400. Calculate the new breakeven point in units and sales dollars for each product.
4. Assume the original facts except that the variable costs are increased by 10% for each product. Calculate the new breakeven point in units and sales dollars for each product. Assume the sales mix stays constant.
5. Assume the original facts and that J&H wants a before tax target profit for the company of $477,000. Calculate the level of sales needed in units and sales dollars for each product to reach the target profit.
6. Assume the original facts and that J&H wants an after tax target profit for the company of $300,000. Calculate the level of sales needed in units and sales dollars for each product to reach the target profit.