question archive The Dooley Co

The Dooley Co

Subject:AccountingPrice:2.87 Bought7

The Dooley Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year:

  Baubles   Trinkets
  28,000 units   14,000 units
  Sales       $ 28,000         $ 28,000
  Costs:                      
     Fixed $ 5,600         $ 12,880      
     Variable   16,800     22,400     11,200     24,080
                       
  Income before taxes       $ 5,600         $ 3,920
                       
 

  
How many Baubles will be sold at the break-even point, assuming that the facilities are jointly used with the sales mix remaining constant?

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