H.W. exercise on multi-product breakeven:
Queens Company manufactures two types of components for electronic player pianos. The CD component sells for $12 per unit and has variable expenses of $9 per unit. The component related to the sound board sells for $8 per unit and has variable expenses of $5 per unit. Fixed costs total $146,000.
1. If Queens Co. sells 20,000 CD products and 40,000 sound board products in a year, what is the operating income?
2. How many units of each product must be sold for Queens Co. to break even?