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Price Corporation
Price Corporation Manufactures and Sells Two Products: a and

Question 101

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Price Corporation
Price Corporation manufactures and sells two products: A and
B.The projected information on these two products for the coming year is presented below:
Product AProduct B Sales in units 4,0001,000 Sales price per unit $12$8 Variable costs per unit 84\begin{array}{lll}&Product~ A&Product~ B\\\hline\text { Sales in units } & 4,000 & 1,000 \\\text { Sales price per unit } & \$ 12 & \$ 8 \\\text { Variable costs per unit } & 8 & 4\end{array} Total fixed costs for the company are projected at $10,000.
Refer to Price Corporation.How many units would the company need to sell to produce an income before income taxes equal to 15 percent of sales?

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