Tops Company sells Products D and E and has made the following estimates for the coming year:
$\begin{array}{clll}
\text { Sales Mix } & \text { Unit Variable Cost } & \text { Unit SellingPrice } & \text { Product } \
\hline 60 \% & \$ 24 & \$ 30 & \mathrm{D} \
40 & 56 & 70 & \mathrm{E}
\end{array}$
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

Tops Company sells Products D and E and has made the following estimates for the coming year:
 $\begin{array}{clll}
\text { Sales Mix } & \text { Unit Variable Cost } & \text { Unit SellingPrice } & \text { Product } \
\hline 60 \% & \$ 24 & \$ 30 & \mathrm{D} \
40 & 56 & 70 & \mathrm{E}
\end{array}$
 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.

Quizplus · Accepted Answer

The Answer of Tops Company sells Products D and E and has made the following estimates for the coming year:
 $\begin{array}{clll}
\text { Sales Mix } & \text { Unit Variable Cost } & \text { Unit SellingPrice } & \text { Product } \
\hline 60 \% & \$ 24 & \$ 30 & \mathrm{D} \
40 & 56 & 70 & \mathrm{E}
\end{array}$
 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.

Tops Company Sells Products D and E and Has Made