Question
Silver River Company sells Products S and T and has made the following estimates for the coming year: Product Unit Selling Price Unit Variable Cost
Silver River Company sells Products S and T and has made the following estimates for the coming year:
Product | Unit Selling Price | Unit Variable Cost | Sales Mix |
S | $30 | $24 | 60% |
T | 70 | 56 | 40 |
Fixed costs are estimated at $202,400. Determine (a) the estimated sales in units of the overall product necessary to reach the break-even point for the coming year (5 pts), (b) the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year (5 pts), and (c) the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year (3 pts).
- Break-even for overall units: ______________
- Units of S needed: ___________ Units of T needed: _____________
- Break-even for profit of $119,600: ______________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started