=+4-28 KKK Sales mix, new and upgrade customers OBJECTIVES 1, 2, 4, 7 Ziggy 1-2-3 is a top-selling electronic spreadsheet product. Ziggy is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Ziggy 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizeable differences exist in selling prices and variable marketing costs:

New customers Upgrade customers Selling price $420 $240 Variable costs Manufacturing $50 $50 Marketing 130 180 30 80 Contribution margin $240 $160 The fixed costs of Ziggy 1-2-3, 5.0 are $28000000. The planned sales mix in units is 60% new customers and 40% upgrade customers.

Required 1 What is the break-even point in units for Ziggy 1-2-3 version 5.0, assuming that the planned 60%/40% sales mix is attained?