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Determine the units of each product

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Question - Rolfe Inc. sells 4 products, A, B, C, and D in a mix of 9:7:6:2 respectively. The sales prices, respectively, are $13, $19, $8 and $12. Product A has variable costs of $10 and product B of $14. The contribution margin percentage for C is 25% and for D 75%. Fixed costs total $320,000. In the coming year Rolfe wants to make a profit of $222,000 after tax. The tax rate is 40%.

Determine the units of each product which must be sold to achieve the required income after tax.

Reference no: EM131794054

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