Stella Company Sells Only Two Products,Product a and Product B

question 83

Multiple Choice

Stella Company sells only two products,Product A and Product B. $$\begin{array} { | l | c | c | c | } \hline & \text { Product A } & \text { Product B } & \text { Total } \\\hline \text { Selling price } & \$ 40 & \$ 50 & \\\hline \text { Variable cost per unit } & \$ 24 & \$ 40 & \\\hline \text { Total fixed costs } & & & \$ 840,000 \\\hline\end{array}$$ Stella sells two units of Product A for each unit it sells of Product B.Stella faces a tax rate of 30%.Stella desires a net after-tax income of $73,500.The breakeven point in units would be ________.

• A) 21,750 units of Product A and 43,500 units of Product B
• B) 22,500 units of Product A and 45,000 units of product B
• C) 43,500 units of Product A and 21,750 units of Product B
• D) 45,000 units of Product A and 22,500 units of Product B

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Definitions:

Coping Effectively

Successfully managing to overcome or handle stressful situations or challenges.

Job Dissatisfaction

The feeling of unhappiness or discontent with one’s job or aspects of it.

Defence Mechanisms

Psychological strategies used by individuals to cope with reality and to maintain a self-image by lessening the anxiety stemming from unacceptable thoughts or feelings.

Stress Experience

The feelings and physical reactions to pressures or threats, varying in intensity depending on the individual's perception and coping mechanisms.