Silver River Company sells Products S and T and has made the following estimates for the coming year: Fixed costs are estimated at $202,400. Determine a) the estimated sales in units of the overall product necessary to reach the break-even point for the coming year, b) the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year, and c) the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year.

Question

Silver River Company sells Products S and T and has made the following estimates for the coming year:  Fixed costs are estimated at $202,400. Determine a) the estimated sales in units of the overall product necessary to reach the break-even point for the coming year, b) the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year, and c) the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year.

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The Answer of Silver River Company sells Products S and T and has made the following estimates for the coming year:  Fixed costs are estimated at $202,400. Determine a) the estimated sales in units of the overall product necessary to reach the break-even point for the coming year, b) the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year, and c) the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year.

Silver River Company Sells Products S and T and Has