Multiple-product profit analysis. The Salinas Company produces and sells three products. Operating data for the three products follow. Define a unit as the sum of one unit of product R sold, two units...

Multiple-product profit analysis. The Salinas Company produces and sells three products. Operating data for the three products follow.

Define a unit as the sum of one unit of product R sold, two units of product Q sold, and three units of product P sold.

a. Draw a cost-volume-profit graph for the Salinas Company.

b. At what number of units does the Salinas Company break even?

c. Change the facts. Suppose a ‘‘unit’’ now consists of two units of product P for every two units of product Q and one unit of product R. At what number of units does Salinas Company break even?