Question
Norman Goods sells only two products, Product A and Product B. Product A Product B Total Selling price $50 $80 Variable cost per unit $33
Norman Goods sells only two products, Product A and Product B.
| Product A | Product B | Total |
Selling price | $50 | $80 |
|
Variable cost per unit | $33 | $48 |
|
Total fixed costs |
|
| $550,000 |
Norman Goods sells three units of Product A for each two units it sells of Product B. Norman Goods has a tax rate of 20%.
Required:
a. What is the breakeven point in units for each product, assuming the sales mix is 3 units of Product A for each two units of Product B?
b. How many units of each product would be sold if Norman Goods desired an after-tax net income of $410,000, using its tax rate of 20%?
Hello , please i need the answer quickly
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