The Taylor Company Ltd. produces two products, A and B. Expected data for the first year of operations is: Total fixed costs are expected to be `3,60,000 for the year. You are required to answer the...

The Taylor Company Ltd. produces two products, A and B. Expected data for the first year of operations is:

Total fixed costs are expected to be `3,60,000 for the year.

You are required to answer the following: (i) If sales, prices, and costs are as expected, what will be the operating income and the break-even volume in sales revenue? (ii) Assume that prices and costs were as expected, but Taylor sold 12,000 units of A and 8,000 units of B. Recalculate the operating income and the break-even volume in sales revenue.