XYC Company sells products both domestically and internationally. Fixed costs totaled $4,300,000 last year. In an effort to increase its total sales volume, XYC plans to spend an additional $1,220,000 in advertising next year. Expected average prices and variable costs appear below:

DomesticInternational

Price per unit ____60________50____

Variable costs per unit____35________30____

Because of the increased advertising, XYC expects to sell 225,000 units domestically and 150,000 units internationally next year. Requirements (a) Using the expected sales mix, determine the number of units that XYC must sell in each market in order to earn income of $575,000 next year.

Requirement:

(a)Using the expected sales mix, determine the number of units that XYC must sell in each market in order to earn income of $575,000 next year. Use the bundle approach. Begin by calculating the multiple to be used with this product mix. (Hereafter referred to as the Product Mix Multiple (PMM). Round your answer to one decimal place. Abbreviation used: CM = Contribution margin; FC = Fixed costs; PMM = Product mix multiple; SP = Sales price; VC = Variable costs; Dom = Domestic, Int. = International)

Sales units (Dom)/ Sales units ( INT )=product mix multiple (PMM)

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Next, identify the formula and calculate the required sales units that XYC must sell in the international market using the bundle approach. (Round interim calculations to one decimal place. Abbreviation used: CM/unit Contribution margin per unit; FC = Fixed costs; PMM = Product mix multiple; Sales price; VC Variable costs; Dom Domestic, Int. = International)

( FC+ target Profit )/ ( CM/ unit (INT)+(PMM*CM/ unit(Dom) = Required units(INT)

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Next identify the formula used to calculate the required sales units that Beta must sell in the domestic market using the bundle approach. (Abbreviation used: CM/unit = Contribution margin per unit; FC = Fixed costs; PMM = Product mix multiple; %3D Sales price; VC = Variable costs; Dom Domestic, Int. International)

Units to earn target profit (INT)*product mix multiple (PMM)= Required unit (Domestic)

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Please Fill the tables and explain to me how you got Target Profit in (FC+ Target Profit). thanks