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Nalvany Company manufactures two products. Information about the two products is as follows: Product Product GG HH Selling price per unit $265 $124 Variable manufacturing
Nalvany Company manufactures two products. Information about the two products is as follows: Product Product GG HH Selling price per unit $265 $124 Variable manufacturing costs per unit 195 92 Variable selling costs per unit 12 7 The company expects fixed manufacturing costs to be $192,700 and fixed selling costs to be $55,562. The firm expects 60% of its sales (in units) to be Product GG (i.e. a sales mix of 3:2). Required (round to 2 decimal places): 1. Assuming the sales mix given above, determine the break-even point for the whole company (and show break-even volume for each product: GG and HH). 2. Calculate the number of units of each product that must be sold if the company has a target profit of $38,000 3. Based on your calculation above, state whether the riskiness of this business is either high/moderate/low/unknown - and briefly explain why
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