Silver River Company sells Products S and T and has made nates for the coming year. Unit Selling Price $12 Unit Variable Cost Sales Mix $3 30% 15 4 70% stimated at $46,800. mine

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CE
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Q1.
(Warren) Silver River Company sells Products S and T and has made
the following estimates for the coming year.
Selling Price
$12
Product
Unit
Unit
Variable Cost
Sales Mix
$3
30%
15
4
70%
Fixed costs are estimated at $46,800.
Instructions, Determine
1. the estimated number of units of each product necessary to be sold to
reach the break-even point for the coming year by using mathematical
аpproach
2. the estimated number of units of each product necessary to be sold to
reach the break-even point for the coming year by using weighted average
contribution margin approach
Transcribed Image Text:Q1. (Warren) Silver River Company sells Products S and T and has made the following estimates for the coming year. Selling Price $12 Product Unit Unit Variable Cost Sales Mix $3 30% 15 4 70% Fixed costs are estimated at $46,800. Instructions, Determine 1. the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year by using mathematical аpproach 2. the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year by using weighted average contribution margin approach
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