1. The company Sunshine Inc. produces two products for which the following data is included:

	Product X	Product Y
Sale Price per Unit	36	24
Variable cost per unit	28	12
Total fixed costs	234,000

Assume that products X and Y are normally produced in the ratio of 2 units of The tax rate is 30%.

Required:

Part A- if product X absorbs 60% of the total fixed costs (60% of $234,000), and product Y absorbs the remaining 40% 1. Calculate the break even point for the product 2. Determine the percentage contribution margin per product (% contribution margin) 3. Calculate the total margin of safety. 4. At what price would product Would this strategy be appropriate? Explain.

Part B- If X and Y are produced in the original proportions (sales mix, break even multiple products), calculate the number of units that would have to be produced of both products if a net income of $84,000 is to be generated.