Use the following information to answer the next two questions:

Newby, Inc. sells only two products, Product A and Product B. The following data relate to expected sales for the coming period:

Product A Product B

Sales units 30,000 20,000

Sales revenue $360,000 $200,000

Variable cost of goods sold $120,000 $60,000

Fixed cost of goods sold $45,000 $25,300

Variable selling and administrative costs $90,000 $20,000

Fixed selling and administrative costs $20,400 $20,000

How many units of each product are needed to breakeven at the given sales

mix? (Do not round relevant intermediate calculations, such as percentages).

a.14,569 units of Product A and 9,713 unitsof Product B

b.5,550 units of Product A and 3,700 units of Product B

c.8,739 units of Product A and 5,826 units of Product B

d.16,920 units of Product A and 12,450 units of Product B

e.13,080 units of Product A and 7,550 units of Product B

f.12,300 units of Product A and 8,200 units of Product

g.8,175 units of Product A and 6,471 units of Product B

h.None of the above

Given their current operating income, by what percentage will Newbys profits increase if sales increase by 1.50%? (Round final answer in percentages to 2 decimal places)

a.2.92%

b.2.66%

c.2.41%

d.2.54%

e.3.58%

f.2.25%

g.3.66%

h.None of the above