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The Terrence Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year: Baubles Trinkets 12,000 units 6,000 units Sales $

The Terrence Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year:

Baubles Trinkets
12,000 units 6,000 units
Sales $ 12,000 $ 12,000
Costs:
Fixed $ 2,900 $ 6,760
Variable 7,200 10,100 3,000 9,760
Income before taxes $ 1,900 $ 2,240

How many Baubles will be sold at the break-even point, assuming that the facilities are jointly used with the sales mix remaining constant?

rev: 10_26_2018_QC_CS-145247

A. 7,250

B. 8,400

C. 11,270

D. 14,490

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