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Must show all work Novelties, Inc., of Palau makes three products, A, B, and C. Present revenue, cost and sales data on the two products
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Novelties, Inc., of Palau makes three products, A, B, and C. Present revenue, cost and sales data on the two products follow: Selling price per unit Variable expenses per unit Number of units sold annually $15 $45 20 10,000 10 5,000 25,000 Fixed expenses total $481,920 per year. The tax rate is 30 percent REQUIRED 1. Assuming the sales mix given above, compute the break-even point in units for each product 2. Assuming the same sales mix, how many of each product would have to be sold to earn a net income after taxes of $26,432Step by Step Solution
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