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Determine the estimated sale in units of the overall product

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Reference no: EM132607670

Tops Company sells Products D and E and has made the following estimates for the coming year:

                       Product Unit           Selling Price Unit                    Variable Cost

Sale Mix

D                       $30                          $24                             60%

E                        70                           56                                  40

Fixed costs are estimated at $202,400.

Question a. Determine the estimated sales in units of the overall product necessary to reach the break-even point for the coming year. Round intermediate calculations to the nearest cent.

Question b. Determine the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year.

Product D units Product E units

Question c. Determine the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year.

Reference no: EM132607670

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