How many units of each product must the company sell

Reference no: EM131988225

Problem

Suppose a company has 3 products. Product A has a contribution margin per unit of $15, product B has a contribution margin per unit of $25, and product C has a contribution margin per unit of $32. For every 3 units sold of product A the company sells 2 units of product B and 5 units of product C. The company has fixed costs of $835,000. Suppose that the company wants to make an after-tax profit of $2, 450,000 and has a tax rate of 30%, how many units of each product must the company sell to achieve this goal?

Reference no: EM131988225

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