Question 2: (4 Points)

Messrs. Siddharth False Ceiling Manufacturing Company manufactures and sells two products: Plywood and Gypsum Boards. The company has made the following estimates for the coming year:

Product (per 4x8 sheet)	Unit Selling Price	Unit Variable Cost	Sales Mix
Plywood	$27	$21.6	30%
Gypsum boards	$16	$12.8	70%

Fixed costs are estimated at $80,400.

Required:

a) (1 Point) Determine the estimated sales in units of the overall product necessary to reach the break-even point for the coming year.

b) (1 Point) Determine the estimated number of units of each product necessary to be sold to reach the breakeven point for the coming year.

c) (2 Points) Determine the estimated sales in units of the overall product necessary to realize an operating income of $60,600 for the coming year.