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Hitch Company Sells Products S and T and has made the following estimates for the coming yr:
Product   Unit Selling price  Unit Variable Cost  Sales Mix   

S                           $30                 $24               60%   

T                           $70                 $56               40%

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.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9797845

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