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:

Alpha

Beta

Annual fixed costs

$200,000

$300,000

Variable cost per unit

$30

$20

1.Which of the two products will be more profitable at a sales level of 20,000 units?

a.Alpha

b.Beta

2.Refer to the previous question. By what amount is the product (Alpha or Beta) more profitable?

3.At whatvolume level(i.e.,number of units) will the profit for the two products be the same?