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Dec 25, 2008 
vasko asked:
How to calculate a certain volume of two products (with different selling price, fixed costs and variable costs), if equal profits to be earned from both the products ? Example - Product X sells for $100 each and Y sells for $120 each. Product X fixed cost of $20000 per year and variable cost of $12 per unit, whereas product Y has fixed cost of $8000 and variable cost of $40 per unit. At what production rate (volume) are the profits from both products equal ?
Dorothy
How to calculate a certain volume of two products (with different selling price, fixed costs and variable costs), if equal profits to be earned from both the products ? Example - Product X sells for $100 each and Y sells for $120 each. Product X fixed cost of $20000 per year and variable cost of $12 per unit, whereas product Y has fixed cost of $8000 and variable cost of $40 per unit. At what production rate (volume) are the profits from both products equal ?
Dorothy
