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Silver River Company sells Products S and T and has made the following estimates for the coming year:
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, and (c) the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year.
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