Question
XYZ Company has three products X, Y, and Z. X sells for $20 with a variable cost of $8, Y sells for $30 with a
XYZ Company has three products X, Y, and Z. X sells for $20 with a variable cost of $8, Y sells for $30 with a variable cost of $21, Z sells for $50 with a variable cost of $40. Fixed costs amount to $214,000. Furthermore, assume that for every 5 units of X that are sold, the company sells 3 units of Y and 2 units of Z. 1) Determine break-even in units and dollars of each product. 2) Assuming a desired profit of $107,000, how much of each product should be sold? 3) Assuming a desired net profit of $149,800 and a tax rate of 30%, how much of each product should be sold?
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