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What would be the new break-even point in total units

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Question - Blowfish Company produces two products, A and B, with the following characteristics:

Product A Product B

Selling price per unit $12 $14

Variable cost per unit $7 $10

Expected sales (units) 9,000 5,000

Total fixed costs for the company are $25,000

1. What is the anticipated profit given the expected sales volume?

2. Assuming the product mix would be the same at the break-even point, compute the break-even point (be sure to indicate the number of units of each product).

3. If only product A were sold, how many units would be needed to break even?

4. If only product B were sold, how many units would be needed to break even?

5. If the product mix changed so that equal units of A and B were sold, what would be the new break-even point in total units?

Reference no: EM133171860

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