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Schultz Company sells two products X and Y. Product X is sold for $25 per unit and has a variable cost per unit of $15.
- Schultz Company sells two products X and Y. Product X is sold for $25 per unit and has a variable cost per unit of $15. Product Y is sold for $30 per unit and has a unit variable cost of $20. Total fixed costs for the company are $20,000. Schultz Company typically sells three units of Product X for every unit of Product Y.
- What is the breakeven point in total units and by product?
- What quantity and by product will generate a target operating income of $20,000?
- What quantity and by product will generate an after tax net income of $20,000. Assume a tax rate of 30%.
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