Multiple Products; ABC Assume the same information as for Problem 9-44 above, with this additional information: product A is made in batches of 3,000 units and product B is made in batches of 750 units. The nature of the production process is such that each batch of product must be made in these quantities. We also assume that total batch-level costs of $60,000 vary directly with the number of batches used, so that a reduction in the number of batches produced will reduce total batch-level costs.
Required
1. Determine the breakeven point in units for each product using ABC.
2. Assume that expected sales of product A and B are 32,000 units and 8,000 units (instead of 18,000 and 4,500), and that the batch size for product A is 4,000 units per batch while the batch size for product B is 1,000 units per batch. All the remaining information from 9-44 is the same. Using ABC, determine the breakeven point in units for each product.
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