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

$870,000

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:

What is the breakeven point in units for Product A assuming the sales mix is 3 units of Product A for each unit of Product B?