A firm sells two different products, A and B. For each unit of B sold, the firm sells two units of A. Total fixed costs $1,260,000. Additional selling prices and cost information for both products follow:
Required:
(a) Calculate the contribution margin per composite unit.
(b) Calculate the break-even point in units of each individual product.
(c) If pretax income before taxes of $294,000 is desired, how many units of A and B must be sold?
Definitions:
Miniature Poodle
A breed of highly intelligent and trainable dog known for its small size and curly, hypoallergenic coat.
Positive Reinforcer
An event or stimulus that, when presented after a behavior, increases the likelihood of that behavior being repeated.
Sticker
A piece of printed paper, plastic, or other material with pressure sensitive adhesive on one side, used for attaching to surfaces for decoration, identification, or other purposes.
Successive Approximations
A process in behaviorism used for training where behaviors are broken down into simple steps and reinforced until the desired behavior is achieved.
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