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The Terrence Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year: Baubles Trinkets 15,000 units 7,500 units Sales $
The Terrence Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year:
Baubles | Trinkets | ||||||||||
15,000 units | 7,500 units | ||||||||||
Sales | $ | 15,000 | $ | 15,000 | |||||||
Costs: | |||||||||||
Fixed | $ | 3,300 | $ | 9,570 | |||||||
Variable | 6,750 | 10,050 | 3,750 | 13,320 | |||||||
Income before taxes | $ | 4,950 | $ | 1,680 | |||||||
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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