Evaluating two products at acme company


Problem:

Acme Company has to evaluate two products (A&B). The following data pertains to these products.

                                    Product A    Product B
Selling price per unit           $60           $80
Variable cost per unit          $40           $50
Total fixed costs               20000         30000

Find the quantities to be sold from each product to make you indifferent to choose

Product A or Product B

Calculation requires.

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Accounting Basics: Evaluating two products at acme company
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