Mount Carmel Company sells only two products, Product A and Product B$.$

Product A

Product B

Total

Selling price

$$40$

$$50$

Variable cost per unit

$$24$

$$40$

Total fixed costs

$$1,260,000$

Mount Carmel sells two units of Product A for each unit it sells of Product B$.$ Mount Carmel faces a tax rate of $30\%.$

Required:

a$.$ What is the breakeven point in units for each product assuming the sales mix is $2$ units of Product A for each unit of Product B$?$

b$.$ What is the breakeven point if Mount Carmel's tax rate is reduced to $25\%,$ assuming the sales mix is $2$ units of Product A for each unit of Product B$?$

c$.$ How many units of each product would be sold if Mount Carmel desired an after$-$tax net income of $$73,500,$ facing a tax rate of $30\%?$