Question: Question 2: ( 4 Points) Messrs. Siddharth False Ceiling Manufacturing Company manufactures and sells two products: Plywood and Gypsum B oards. The company has made

Question 2: (4 Points)

Messrs. Siddharth False Ceiling Manufacturing Company manufactures and sells two products: Plywood and Gypsum Boards. The company has made the following estimates for the coming year:

Product (per 4x8 sheet)

Unit Selling Price

Unit Variable Cost

Sales Mix

Plywood

$27

$21.6

30%

Gypsum boards

$16

$12.8

70%

Fixed costs are estimated at $80,400.

Required:

a) (1 Point) Determine the estimated sales in units of the overall product necessary to reach the break-even point for the coming year.
b) (1 Point) Determine the estimated number of units of each product necessary to be sold to reach the breakeven point for the coming year.
c) (2 Points) Determine the estimated sales in units of the overall product necessary to realize an operating income of $60,600 for the coming year.

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