Daybreak Corporation manufactures and sells two products: A and B. The operating results of the...
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Accounting
Daybreak Corporation manufactures and sells two products: A and B. The operating results of the company are as follows:
Product A Product B
Sales in units 3,000 4,000
Sales price per unit $12 $7
Variable costs per unit 6 4
In addition, the company incurred total fixed costs in the amount of $10,000. Refer to Daybreak Corporation. How many units would the company need to sell to produce a before-tax profit of $20,000?
a. 6,250
b. 6,000
c. 6,923
d. 7,000
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