12 Our company currenty makes and sells two products: A and B. The relative number of production and sales between A and B is 2:3. In other words, each time the company produces and sells two units of product A, it produces and sells three units of product B. The following cost information is available: Company A B Unit Selling Price $11 $15 Unit Varible Cost $5 $7 Total fixed expenses $15,000 How much sales volume does the company need to make from Product B if it wants to achieve $3,000 profits? (Do not round intermediate calculations. Round the final answer to the nearest units.) А. 1,500 units В. 1,340 units 893 units С. D. 1,000 units E. None of the above

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...
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12 Our company currenty makes and sells two products: A and B. The relative number of production and sales between A
and B is 2:3. In other words, each time the company produces and sells two units of product A, it produces and sells three
units of product B. The following cost information is available:
Company
A
В
Unit Selling Price
$11
$15
Unit Varible Cost
$5
$7
Total fixed expenses
$15,000
How much sales volume does the company need to make from Product B if it wants to achieve $3,000 profits?
(Do not round intermediate calculations. Round the final answer to the nearest units.)
А.
1,500 units
В.
1,340 units
C.
893 units
D.
1,000 units
Е.
None of the above
Transcribed Image Text:12 Our company currenty makes and sells two products: A and B. The relative number of production and sales between A and B is 2:3. In other words, each time the company produces and sells two units of product A, it produces and sells three units of product B. The following cost information is available: Company A В Unit Selling Price $11 $15 Unit Varible Cost $5 $7 Total fixed expenses $15,000 How much sales volume does the company need to make from Product B if it wants to achieve $3,000 profits? (Do not round intermediate calculations. Round the final answer to the nearest units.) А. 1,500 units В. 1,340 units C. 893 units D. 1,000 units Е. None of the above
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