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VSB 3006 Dr. JME Handout - Breakeven #1 #2 #3 Selling Price of A 10 15 6 Selling Price of B 8 22 5 Variable
VSB 3006 Dr. JME
Handout - Breakeven
#1 #2 #3
Selling Price of A 10 15 6
Selling Price of B 8 22 5
Variable Cost of A 4 11 4
Variable Cost of B 7 19 4
Mix of A and B 5-2 3-5 2-1
Fixed Costs 1,700 2,000 1,000
Tax Rate 25% 30% 30%
Desired NI 10,000 45,000 28,000
Required: Determine the number of As and Bs each of the firms should sell to meet their individual goals.
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