coronavirus (COVID -19) impact on business

Willard’s Company is manufacturer of cosmetic products in Jamaica. Due to the onslaught of the coronavirus (COVID -19), Willard decided to produce two new products to help in reducing the spread of the virus. The following information is available:
Hand Sanitizer  Hand Cleaner
Selling price per unit                                   $46                                $36
Variable cost per unit                                  $38                                $24
Total fixed costs are $234,000. Willard plans to sell 21,000 units of Hand Sanitizer and 7,000 units of Hand Cleaner.
Required:
a)     Compute the contribution margin for each product.                                              (3 marks)
b)     What is the expected net income?                                                                          (3 marks)
c)     Assume the sales mix is 3 units of Hand Sanitizer for every 1 unit of Hand Cleaner;
What is the break-even point in units for each product?                                        (4 marks)
d)    Assume the sales mix is 3 units of Hand Sanitizer for every 2 units of Hand Cleaner;
What is the break-even point in units for each product?                                        (5 marks)

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