A firm sells two different products,A and
A. Total fixed costs for this firm are $1,260,000. Additional selling prices and cost information for both products follow:
$\begin{array}{rrr}
&\text { Selling } &\text { Variable }\
\text { Product } &\text { Price per }&\text { Costs per }\
&\text { Unit } &\text { Unit } \
\text { A } & \$ 72 & \$ 40 \
\text { B } & 48 & 28
\end{array}$ Required:
a. Calculate the contribution margin per composite unit.
b. Calculate the break-even point in units of each individual product.
c. If pretax income before taxes of $294,000 is desired, how many units of A and B must be sold?
B. For each unit of B, the firm sells two units of

Question

A firm sells two different products,A and
A. Total fixed costs for this firm are $1,260,000. Additional selling prices and cost information for both products follow:
 $\begin{array}{rrr}
&\text { Selling  } &\text { Variable }\ 
\text { Product } &\text { Price per }&\text { Costs per }\
&\text { Unit } &\text { Unit } \
\text { A } & \$ 72 & \$ 40 \
\text { B } & 48 & 28
\end{array}$ Required:
a. Calculate the contribution margin per composite unit.
b. Calculate the break-even point in units of each individual product.
c. If pretax income before taxes of $294,000 is desired, how many units of A and B must be sold? 
B. For each unit of B, the firm sells two units of

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The Answer of A firm sells two different products,A and
A. Total fixed costs for this firm are $1,260,000. Additional selling prices and cost information for both products follow:
 $\begin{array}{rrr}
&\text { Selling  } &\text { Variable }\ 
\text { Product } &\text { Price per }&\text { Costs per }\
&\text { Unit } &\text { Unit } \
\text { A } & \$ 72 & \$ 40 \
\text { B } & 48 & 28
\end{array}$ Required:
a. Calculate the contribution margin per composite unit.
b. Calculate the break-even point in units of each individual product.
c. If pretax income before taxes of $294,000 is desired, how many units of A and B must be sold? 
B. For each unit of B, the firm sells two units of

A Firm Sells Two Different Products,A and A Required: A

A Firm Sells Two Different Products,A and
A Required:
A