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

$$840,000$

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

Required:

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$?$

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

Calculate margin of safety in revenue and as a percentage if $60,000$ units of A and $30,000$ units of $B$ have been sold.

Continue with Req. $3,$ calculate degree of operating leverage. If sales volume is to increase $15\%,$ by what percentage will operating income increase?