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The Terrence Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year: Baubles Trinkets 10,400 units 5,200 units Sales $
The Terrence Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year:
| Baubles |
| Trinkets | ||||||||
| 10,400 units |
| 5,200 units | ||||||||
Sales |
|
|
| $ | 10,400 |
|
|
|
| $ | 10,400 |
Costs: |
|
|
|
|
|
|
|
|
|
|
|
Fixed | $ | 2,100 |
|
|
|
| $ | 3,570 |
|
|
|
Variable |
| 7,280 |
|
| 9,380 |
|
| 4,160 |
|
| 7,730 |
Income before taxes |
|
|
| $ | 1,020 |
|
|
|
| $ | 2,670 |
How many Baubles will be sold at the break-even point, assuming that the facilities are jointly used with the sales mix remaining constant?
13,230
12,285
5,670
7,000
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