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4. North Pole Toys needs to decide on their newest product line for Christmas. They...

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Finance

4. North Pole Toys needs to decide on their newest product line for Christmas. They narrowed their options to two possibilities: Product A would incur a fixed cost of $3,000 and a variable cost of $6 per unit and sells for $7.50; Product B would incur a fixed cost of $1,200 and a variable cost of $9 per unit and sells for $10.

4a. What is the breakeven point for each of the two products?

4b. What is the point of indifference between the two products?

4c. Which product should they make if they expect to sell 4,000 units?

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