P-1. (CVP) Rowling Company produces and sells 3 products, product A, product B, and product C. Over the most recent 5 years, Rowling sold 10,000 units of A, 15,000 units of B, and 25,000 units of C on average each year. The following information pertains to prices and costs of the three products. A 25 15 Price($)/unit Variable costs ($)/unit Fixed costs: $540,000 Target income after tax of 40%: $270,000 B 30 20 C 18 10 Required: Assume that the sales mix is maintained. a. What is the company's break-even point in terms of number of units of each product given the sales mix above? b. How many units of each product should be sold to earn the target income? c. If Rowling keep earning the target income every period and 50% of the income earned to recover the investment cost, how many periods will it take to fully recover the investment cost of $810,000?

P-1. (CVP) Rowling Company produces and sells 3 products, product A, product B, and product C. Over the most recent 5 years, Rowling sold 10,000 units of A, 15,000 units of B, and 25,000 units of C on average each year. The following information pertains to prices and costs of the three products. Required: Assume that the sales mix is maintained. a. What is the company's break-even point in terms of number of units of each product given the sales mix above? b. How many units of each product should be sold to earn the target income? c. If Rowling keep earning the target income every period and 50% of the income camed to recover the investment cost, how many periods will it take to fully recover the investment cost of $810,000