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The Terrence Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year: Baubles Trinkets 10,000 units 5,000 units Sales $

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

Baubles Trinkets
10,000 units 5,000 units
Sales $ 10,000 $ 10,000
Costs:
Fixed $ 2,000 $ 4,600
Variable 6,000 8,000 4,000 8,600
Income before taxes $ 2,000 $ 1,400

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

6,600

5,000

8,800

9,900

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