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
(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
(c) the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year.

Quizplus · Accepted Answer

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
(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