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2 The Copernicus Watch Company has sold two, solar-powered design watches since 1999, which for these purposes are identified as Product A and B. The Son of the Founder Nicolaus, who recently retired, has assumed the role of CEO upon his retirement. One of his first tasks was to study the product mix to see if the Company can operate more profitably. The key financial data for each product is as follows: Sell Price Variable Costs Fixed Costs Product A $10.00 $5.00 $2,000.00 Product B $12.00 $10.00 $600.00 He asked his Management Team the following questions: (1) If these products are sold in the ratio of four A's for every three B's, what is the break-even point? (Show work) Answer: A = B = (2) If the product is modified so that there are five A's to five B's, what happens to the break-even point? (Show work) Answer: A = B = (3)In order to maximize profits, which product should the Management Team recommend to be pushed and why? 4) Because they currently have limited manuafacturing resources, both products must go through the same manufacturing machine, which has 3,000 hours available per period. Based on the facts that Product A requires 0.5 hours per unit to be produced and Product B required 0.25 hours, which product should be pushed and why