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Question - Mount Carmel Company sells only two products, Product A and Product B.
Product A Product B
Total Selling price $40 $50
Variable cost per unit $24 $40
Total fixed costs $870,000
Mount Carmel sells two units of Product A for each unit it sells of Product B. Mount Carmel faces a tax rate of 30%.
Required - What is the breakeven point in units for Product A assuming the sales mix is 3 units of Product A for each unit of Product B?
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