Dawn's Divewear Company sells only two products,Product A and Product B.
Dawn's Divewear sells two units of Product A for each unit it sells of Product B.Dawn's Divewear faces a tax rate of 30%.
Required:
a.What is the break-even point in units for each product assuming the sales mix is 2 units of Product A for each unit of Product B?
b.What is the break-even point if Dawn's Divewear's tax rate is reduced to 25%,assuming the sales mix is 2 units of Product A for each unit of Product B?
c.How many units of each product would be sold if Dawn's Divewear desired an after-tax net profit of $73 500,facing a tax rate of 30%?
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