Arnold, Inc. sells only two products, Product X and Product Y. The following data relate to expected sales for…

Arnold, Inc. sells only two products, Product X and Product Y. The following data relate to expected sales for…

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Arnold, Inc. sells only two products, Product X and Product Y. The following data relate to
expected sales for the coming period:
Sales units
Sales revenue
Variable costs
Fixed costs
Product X
20,000
$240,000
$140,000
$89,168
Product Y
30,000
$300,000
$120,000
$73,820
(2 points) How many units of each product are needed for Arnold to breakeven at the
given sales mix? (Do not round relevant intermediate calculations, such as
percentages). (2 points) Given their current operating income, by what percentage will Arnold’s
profits increase if sales increase by 1.50%? (Round final answer in percentages to 2
decimal places)

Expert Answer:

Answer rating: 100% (QA)

Determining the breakeven point the number of units for each product that would result in zero operating income is needed by setting the total revenue
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