XYZ Company sells 2 products, Product A and Product B. Historically, XYZ Company has found that for every 2 Product A's that are sold, they sell 1 Product B (3 total products, 2 A and 1 B). Information on XYZ Company is as follows:
Product A Product B
Sales Price $1,000 $750
Costs:
Direct Materials $100 $50
Direct Labor $125 $75
Variable OH $70 $100
Commissions $25 $25
Fixed Costs per Year:
Fixed Overhead: $250,000
Fixed Administrative Costs: $300,000
Tax Rate: 25%
Calculate, in units, how many bundles must be sold to obtain an after tax profit of $300,000. Please show all the steps.