Question: Please, I need help with this problem. please explain the answers so I know how to do the problem. Thank you. 1) Atlanta Radio Supply

Please, I need help with this problem. please explain the answers so I know how to do the problem. Thank you.

1) Atlanta Radio Supply sells only two products, Product X and Product Y.

Product X

Product Y

Total

Selling price

$25

$45

Variable cost per unit

$20

$35

Total fixed costs

$350,000

Atlanta Radio Supply sells a bundle having three units of Product X and two units of Product Y. Atlanta Radio Supply has a tax rate of 25%.

Required:

a. What is the breakeven point in units for each product, assuming the sales mix is 3 units of Product X for each two units of Product Y?

b. How many units of each product would be sold if Atlanta Radio Supply desired an after-tax net income of $210,000, using its tax rate of 25%?

c. What is the breakeven point if Atlanta Radio Supplys tax rate is reduced to 20%, assuming the sales mix is 3 units of Product X and 2 units of Product Y?

d. What is the bundle contribution margin if the sales mix shifts to four units of Product X and one unit of Product Y? _______.

e. If the sales mix shifts to four units of Product X and one unit of Product Y, then the breakeven point will be __________________.

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