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The Dooley Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year: Baubles Trinkets 28,000 units 14,000 units Sales $
The Dooley Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year:
| Baubles | Trinkets | ||||||||||
| 28,000 units | 14,000 units | ||||||||||
| Sales | $ | 28,000 | $ | 28,000 | |||||||
| Costs: | |||||||||||
| Fixed | $ | 5,600 | $ | 12,880 | |||||||
| Variable | 16,800 | 22,400 | 11,200 | 24,080 | |||||||
| Income before taxes | $ | 5,600 | $ | 3,920 | |||||||
How many Baubles will be sold at the break-even point, assuming that the facilities are jointly used with the sales mix remaining constant?
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