Multiple-product target profit A&Z Company sells products both domestically and internationally. Fixed costs totaled $5,000,000 last year. In an effort to increase its total sales volume, A&Z plans to spend an additional $1,280,000 in advertising next year. Expected average prices and variable costs appear below.

Because of the increased advertising, A&Z expects to sell 300,000 units domestically and 200,000 units internationally next year.RequiredUsing the expected sales mix, determine the number of units that A&Z must sell in each market in order to earn income of $200,000 nextyear.

Transcribed Image Text:

DOMESTIC INTERNATIONAL Price per unit Variable costs per unit $40 $16 S50 S30