(Answered) Question - letter co produces and sells two products t and

Accounting

Question - Letter Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 46,000 units of each product. Sales and costs for each product follow.

	Product T	Product O
Sales	$800,400	$800,400
Variable costs	640,320	160,080
Contribution margin	160,080	640,320
Fixed costs	32,080	512,320
Income before taxes	128,000	128,000
Income taxes (35% rate)	44,800	44,800
Net income	$83,200	$83,200

Required: Compute the break-even point in dollar sales for each product.

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