hello,

i need help on these questions please

1.

Multiple Product Break-Even Analysis Presented is information for Stafford Company's three products.

Unit selling price	$7	$9	$7
Unit variable costs	(4)	(5)	(1)
Unit contribution margin	$3	$4	$6

With monthly fixed costs of $306,000, the company sells two units of A for each unit of B and three units of B for each unit of C. Determine the unit sales of product A at the monthly break-even point.

2.

Sweet Grove Citrus Company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit flavorings. The most recent year's sales revenue was $4,200,000. Variable costs were 60 percent of sales and fixed costs totaled $1,500,000. Sweet Grove is evaluating two alternatives designed to enhance profitability.

• One staff member has proposed that Sweet Grove purchase more automated processing equipment. This strategy would increase fixed costs by $400,000 but decrease variable costs to 54 percent of sales.
• AnotherstaffmemberhassuggestedthatSweetGroverelymoreonoutsourcingforfruitprocessing.Thiswouldreducefixedcostsby$400,000butincreasevariablecoststo65percentofsales.
• (a)Assuminganincometaxrateof37percent,whatdollarsalesvolumeiscurrentlyrequiredtoobtainanafter-taxprofitof$300,000?
• b)Intheabsenceofincometaxes,atwhatsalesvolumewillbothalternatives(automationandoutsourcing)
• providethesameprofit?