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Pruton processing is considering introducing a second product that would result in the following estimates
A B
Expected sales volume in units 35,000 15,000
Selling price per unit $40 $26
Variable costs per unit $24 $14
Annual fixed costs 621,600
Question A. Calculate the number of units (in total and per product) required to break-even
Question B. Calculate the number of units (in total and per product) - in the first year of the two products - to earn the same profit as for 2015.
Suppose your company sold $25,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation?
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