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The Bose Company produces two types of exercise machines, Ready(A1) and Steady (A2). Relevant data are as follows: Product Contribution Margin Per Unit Budgeted Sales
The Bose Company produces two types of exercise machines, Ready(A1) and Steady (A2). Relevant data are as follows: Product Contribution Margin Per Unit Budgeted Sales Mix in Units A1 A2 $100 200 60% 40% The company's total fixed costs amount to $350,000 which represents $200,000 fixed manufacturing overhead and $150,000 fixed selling and administrative expenses Required: a. Determine the number of units of each product the company needs to produce and sell to break-even. b. Determine the number of units of each product needed to generate net income after taxes equal to $96,250. Assume a tax rate of 45%
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