Question

The following information is for Alex Corp: Product X: Revenue Variable Cost Product Y: Revenue Variable Cost Total fixed cos

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Answer #1

Units sold:

Product X:

= 240,000 X 2/3

= 160,000

Product Y:

= 240,000 X 1/3

= 80,000

Operating income:

= [($15.50 - $3) X 160,000] + [($12 - $7) X 80,000] - $42,000

= $2,358,000

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