XYZ Company annually sells 2000 units of product A and 8000 units of product B. Product A sells for $14 and costs $6 to manufacture. Product B sells for $12 and costs $6 to manufacture. Fixed costs are $18,000

a) 4%- What is the net income with this sales mix

b)5% - How many units of A & B must be sold for the company to breakeven?

c) 5% - How would your answer change if the sales mix was 8000 of product A and 2000 of product B?

d) 2% - What would you recommend to management about the sales mix of product A & B ?