Sales mix. two products. Goldman Company retails two products, a standard and a deluxe version oi a luggage carrier. The budgeted income statement follows.

Standard Deluxe Carrier Carrier Total Sales in units 150.000 50.000 200.000 Sales @ S20 and S30 per unit S3.000.000 S1 .500,000 S4.500.000 Variable costs @ S14 and S18 per unit 2.100.000 900.000 3.000.000 Contribution margins S 900.000 S 600.000 1 .500.000 Fixed costs 1 .200.000 Operating income S 300.000 Required 1. Compute the breakeven point in units, assuming that the planned sales mix is maintained.

2. Compute the breakeven point in units

(a) if only standard carriers are sold and

(b) if only deluxe carriers are sold.

3. Suppose 200,000 units are sold, but only 20,000 are deluxe. Compute the operating income.

Compute the breakeven point if these relationships persist in the next period. Compare vour answers with the original plans and the answer m requirement 1 . What is the major lesson of this problem!"