Question
Mount Carmel company sells only two products, products A and products B. selling price product A $40, product B $50, variable cost per unit $24,
Mount Carmel company sells only two products, products A and products B. selling price product A $40, product B $50, variable cost per unit $24, product B $40, total fixed costs $840,000. Mount Carmel sells two units of product A for each unit it sells of product B.
Required
a. what is the breakeven point in units for each product assuming the sales mix is 2 units of products A for each unit of product B?
b. what is the break even point in units for each product if the variable cost for product A goes up by $6.00 per unit with nno change in products B?
c. how many units of each product would be sold if mount carmel desired an income of $105,000 (use above information).
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