Q1.(Warren) Silver River Company sells Products S and T and has madethe following estimates for the coming year.Selling Price$12ProductUnitUnitVariable CostSales Mix$330%15470%Fixed 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 mathematicalаpproach2. 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 1: Contribution margin per unit of Product S = $12 - $3 = $9 per unit Contribution margin…

Answered: Silver River Company sells Products S…

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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4BE

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Question

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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