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The Morgan Company produces two products, G and H, with the following characteristics: Selling price per unit Variable costs per unit Forecast sales (units)

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The Morgan Company produces two products, G and H, with the following characteristics: Selling price per unit Variable costs per unit Forecast sales (units) Product G Product H $5 $6 $3 $2 100,000 150,000 Total fixed costs for the year are expected to be $700,000. a. What will be the net income if the forecast sales are realized? Net income $ 100000 b. Determine the break-even volumes of the two products. Assume that the product mix (that is, the ratio of the unit sales for the two products) remains the same at the break-even point. XG units of G units of H c. If it turns out that Morgan sells twice as many units of H as of G, what will be the break-even volumes of the two products? Xa units of G units of H

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