Tops Company Sells Products D and E and Has Made

question 127

Essay

Tops Company sells Products D and E and has made the following estimates for the coming year:
$\begin{array}{clll}\text { Sales Mix } & \text { Unit Variable Cost } & \text { Unit SellingPrice } & \text { Product } \\\hline 60 \% & \$ 24 & \$ 30 & \mathrm{D} \\40 & 56 & 70 & \mathrm{E}\end{array}$
Fixed costs are estimated at $202,400. Determine (a) the estimated sales in units of the overall product necessary to reach the break-even point for the coming year, (b) the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year, and (c) the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year.

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Definitions:

Sugars

Carbohydrates that taste sweet and are used by the body for energy.

Plant Tissue

Groups of cells within a plant that perform specific functions, such as transport (xylem, phloem), support (collenchyma, sclerenchyma), or photosynthesis (parenchyma).

Leaching

Process by which water moving through soil removes nutrients from it.

Nutrients

Substances that provide nourishment essential for the growth and maintenance of life, including proteins, carbohydrates, fats, vitamins, and minerals.