CVP, revenue mix. (J. Watson) Zyrcon Ltd. is a computer games manufacturer. It currently 1 BEP in total units, 517.956 has two games on the market—Alien Predators and Vegas Pokermatch. Data regarding the two products are as follows:

The fixed costs of Zyrcon are $18,750,000, and the current sales mix is 40% Alien Predators and 60% Vegas Pokermatch.
REQUIRED 1. Assuming no change in sales mix, costs, or revenues, what is the breakeven point in total units? How many units of Alien Predators and how many units of Vegas Pokermatch are sold at the breakeven point?
2. Assume the following sales mixes:

a. 25% Alien Predators and 75% Vegas Pokermatch

b. 60% Alien Predators and 40% Vegas Pokermatch

c. 50% Alien Predators and 50% Vegas Pokermatch Calculate the breakeven point under each sales mix assumption.
3. For all four possible sales mixes (in requirements 1 and 2), determine operating income if total unit sales are 750,000.LO1

Transcribed Image Text:

Alien Predators Vegas Pokermatch Selling price $89 $59 Variable manufacturing costs $18 $12 Variable marketing costs $27 $16