Paranormal Company is considering the development of two products: no. 65 or no. 66. Manufacturing cost information follows. Annual fixed costs Variable cost per unit No. 65 $295,000 32 A Break-even sales B. Profitable at a sales level of 23.000 units: No. 66 $480.000 Regardless of which product is introduced, the anticipated selling price will be $60 and the company will pay a 10% sales commission on gross dollar sales. Paranormal will not carry an inventory of these items. No. 65 No. 66 C. Unit-volume level Required: A. What is the break-even sales volume (in dollars) on product no. 66? B. Which of the two products will be more profitable at a sales level of 23,000 units? C. At what unit-volume level will the profit/loss on product no. 65 equal the profit/loss on product no. 66? 22 units 4

Paranormal Company is considering the development of two products: no 65 or no, 66 . Manufacturing cost information follows. Regardless of which product is introduced, the anticipated selling price will be $60 and the company will pay a 10% sales commission on gross dollar sales. Paranormal will not carry an inventory of these items Required: A. What is the breakeven sales volume (in dollars) on product no 66 ? e. Which of the two products will be more profitable at a soles level of 23.000 units? C. At what unitvolume level will the profitioss on product no. 65 equal the profilioss on product no 66