Thompson Company is considering the development of two products: Alpha and Beta. Regardless of which product is introduced, the anticipated selling price will be $50.

Manufacturing cost information follows:

16.Which of the two products will be more profitable at a sales level of 20,000 units? a. Alpha b. Beta

17.Refer to the previous question. By what amount is the product (Alpha or Beta) more profitable? 18.At what volume level (i.e., number of units) will the profit for the two products be the same?

Use the following information for the next 3 questions. Thompson Company is considering the development of two products: Alpha and Beta. Regardless of which product is introduced, the anticipated selling price will be $50. Manufacturing cost information follows: Beta Annual fixed costs Variable cost per unit Alpha $200,000 $30 $300,000 $20 16. Which of the two products will be more profitable at a sales level of 20,000 units? a. Alpha b. Beta 17. Refer to the previous question. By what amount is the product (Alpha or Beta) more profitable? 18. At what volume level (i.e., number of units) will the profit for the two products be the same