Assuming the 2016 unit sales mix and fixed costs do not


Question - X Company has the following information for its three products in 2016:

Unit Sales Contribution Margin

Product A 58,700   $3.70      

Product B 7,700   $6.80      

Product C 19,600   $12.20      

Total 86,000   $22.70      

Fixed costs in 2016 were $309,000. Assuming the 2016 unit sales mix and fixed costs do not change in 2017, what must total unit sales be in 2017 for X Company to earn $135,000 after taxes? Assume a tax rate of 32%.

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Accounting Basics: Assuming the 2016 unit sales mix and fixed costs do not
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