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The Terrence Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year: Baubles Trinkets 10,600 units 5,300 units Sales $
The Terrence Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year:
Baubles | Trinkets | ||||||||||
10,600 units | 5,300 units | ||||||||||
Sales | $ | 10,600 | $ | 10,600 | |||||||
Costs: | |||||||||||
Fixed | $ | 2,200 | $ | 5,500 | |||||||
Variable | 6,360 | 8,560 | 3,180 | 8,680 | |||||||
Income before taxes | $ | 2,040 | $ | 1,920 | |||||||
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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