TwinCo produces and sells two products. Product A sells for $8 and has variable expenses of $3. Product B sells for $18 and has variable expenses of $10. It predicts sales of 20,000 units of A and 10,000 units of B. Fixed expenses are $100,000 per month. Assume that TwinCo hits its sales goal for February of $600,000, but falls short of its expected before-tax profit of $70,000. What has happened?
a. TwinCo sold 40,000 units of product A and no product B.
b. TwinCo sold more of both products A and B than expected.
c. TwinCo sold more of product A and less of product B than expected.
d. TwinCo sold more of product B and less of product A than expected.
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