Question
Stella Company sells only two products, Product A and Product B. Product A Product B Total Selling price $50.00 $30.00 Variable cost per unit $22.00
Stella Company sells only two products, Product A and Product B.
Product A | Product B | Total | ||
Selling price | $50.00 | $30.00 | ||
Variable cost per unit | $22.00 | $8.00 | ||
Total fixed costs | $1,465,000 |
Stella sells two units of Product A for each unit it sells of Product B. Stella faces a tax rate of
30%.
Stella desires a net
aftertax
income of
$66,500.
The breakeven point in units would be ________. (Round any intermediary calculation up to the next whole unit.)
Question content area bottom
Part 1
A.
20,000
units of Product A and
40,000
units of product B
B.
18,783
units of Product A and
37,566
units of Product B
C.
37,566
units of Product A and
18,783
units of Product B
D.
40,000
units of Product A and
20,000
units of Product B
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