Hitch Company Sells Products S and T and has made the followingestimates for the

Question

Hitch Company Sells Products S and T and has made the followingestimates 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 productnecessary to reach the break even point for the comingyear
b) the estimated number of units of each product necessary tobe sold to reach the break even point for the coming year
c) the estimated sales in units of the overall productnecessary to realize an operating income of $119,600 for the comingyear
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 productnecessary to reach the break even point for the comingyear
b) the estimated number of units of each product necessary tobe sold to reach the break even point for the coming year
c) the estimated sales in units of the overall productnecessary to realize an operating income of $119,600 for the comingyear

Explanation / Answer

Hitch Company Sells Products S and T and has made the followingestimates for the

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