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Determine estimated sales in units of the overall product

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Reference no: EM132536023

Question - The Second Company sells Products W and J and has made the following estimates for the coming year:

Product

Unit Selling Price

Unit Variable Cost

Sales Mix

W

$63

$39

75%

J

47

28

25%

Fixed costs are estimated at $345,800. 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 $277,550 for the coming year.

Reference no: EM132536023

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