Practise Question 1 - CVP Analysis (Multi-Product) Red-Star Inc. product line consists of four (4) distinct products: bags, books, pens and pencils. The product mix for Red-Star Inc. for fiscal year 2019/20 is as follows: => Bags 7,000 units => Books 4,000 units => Pens 5,000 units => Pencils 4,000 units The annual fixed cost for Red-Star Inc. is $237,500, while the selling price and variable cost per unit are as follows: Description Bags Books Pens Sales $70 $90 $65 Variable cost $60 $75 $55 REQUIRED: Calculate the break-even units for Red-Star Inc. Calculate the break-even units for each product. A B C Calculate the sales units to make a profit of $190,000 before tax. D Pencils $100 $50 Calculate the sales unit for each product for Red-Star to achieve the $190,000 target profit. E Calculate the sales unit to make an after tax profit of $266,000. The tax rate is 30% F How many units of each product should be sold to achieve the after tax profit of $266,000