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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).

  1. Break-even for overall units: ______________
  2. Units of S needed: ___________ Units of T needed: _____________
  3. Break-even for profit of $119,600: ______________

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