Q1. (Warren) Silver River Company sells Products S and T and has madethe following estimates for the coming year.ProductUnit Selling Price Unit Variable CostS$3$1215Sales Mix30%70%T4Fixed costs are estimated at $46,800.Instructions, Determine1. the estimated number of units of each product necessary to be sold toreach the break-even point for the coming year by using mathematicalapproach2. the estimated number of units of each product necessary to be sold toreach the break-even point for the coming year by using weighted averagecontribution margin approach

Solution Introduction Breakeven point is that point at which the contribution generated is equal to…

Q1. (Warren) 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 $3 S $12 Sales Mix 30% 70% T 15 Fixed costs are estimated at $46.800.

Q1. (Warren) 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 $3 S $12 Sales Mix 30% 70% T 15 Fixed costs are estimated at $46.800.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

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Q1. (Warren) 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
S
$3
$12
15
Sales Mix
30%
70%
T
4
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
approach
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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