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product A: company sells it profit -9000 sales - 50000 fixed cost - 21000 variable cost - 0,64 per one Product B: compa

Posted: Tue Apr 12, 2022 10:54 am
by answerhappygod
product A: company sells it
profit -9000
sales - 50000
fixed cost - 21000
variable cost - 0,64 per one
Product B: company plans to start selling for 3$ per unit
variable cost - 0,72
monthly fixed cost will be increased by 8808$
initial sales of product B should total 5000 units
monthly sales of product A are expected to decline to 20000$.
After first year of Porduct B sales, company believes that product A sales will increase to 33750$ a month, product B sales will increase to 7500 units a month.
a) the monthly breakeven sales in dollars before adding product B
b) the monthly breakeven sales during the first year of product B sales, assuming a constant sales mix of 1 product A and 2 units of product B.