Wannabe Industries manufactures two products: Genko1 and Remo1. The unit financial information for these two products is presented below:

Genko 1 ($) Remo 1 ($)

Sales Rev 70 50

Less

Manufacturing cost:

Variable 40 20

Fixed 6 7

Less

Selling & Admin cost:

Variable 10 10

Fixed 3 4

Wannabe Industries' total fixed costs are $306,000. Expected demand of the two products is 12,000 units of Genko1 and 18,000 units of Remo1, and the company can produce enough units of each product to meet demand. Sales of Genko1 constitute forty percent of the company's overall sales. Each unit of Genko1 requires 0.25 DLH and each unit of Remo1 requires 0.5DLH. The tax rate is 30%.

Required:

(a) Given the sales mix, how many units of Genko1 and Remo1 must be sold for the company to break even? Show all calculations.

(b) What is the sales revenue at the breakeven point for each product calculated in part (a)? Show all calculations.

(c) How many units of Genko1 and Remo1 should be sold to generate an after tax profit of $145,600? (d) Assume now that there is a maximum of 8,000 DLH available for the period. Identify the product mix that will maximize the company's total profit. Ignore taxes and show all calculations.