Stella Company Sells Only Two Products, Product a and Product

Multiple Choice

Stella Company sells only two products, Product A and Product B.

Stella sells two units of Product A for each unit it sells of Product B. Stella faces a tax rate of 40%. Stella desires a net after-tax income of $54,000. The breakeven point in units would be ________.

A) 25,250 units of Product A and 50,500 units of Product B
B) 27,500 units of Product A and 55,000 units of product B
C) 50,500 units of Product A and 25,250 units of Product B
D) 55,000 units of Product A and 27,500 units of Product B