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XYZ Company sells 2 products, Product A and Product B.Historically, XYZ Company has found that for every 2 Product A's that are sold, they sell

XYZ Company sells 2 products, Product A and Product B.Historically, XYZ Company has found that for every 2 Product A's that are sold, they sell 1 Product B (3 total products, 2 A and 1 B).Information on XYZ Company is as follows:

Product A Product B

Sales Price $1,000 $750

Costs:

Direct Materials $100 $50

Direct Labor $125 $75

Variable OH $70 $100

Commissions $25 $25

Fixed Costs per Year:

Fixed Overhead: $250,000

Fixed Administrative Costs: $300,000

Tax Rate: 25%

Calculate, in units, how many bundles must be sold to obtain an after tax profit of $300,000. Please show all the steps.

Thank you!

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