Revenue mix, two products. (20-25 minutes) Presencia Equipajes, SA, retails two products, a standard and a deluxe version of a luggage carrier.

The budgeted income statement is as follows: lop7

REQUIRED 1. Calculate the breakeven point in units, assuming that the planned revenue mix is maintained.
2. Calculate 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. Calculate the operating profit. Calculate the breakeven point if these relationships persist in the next period. Compare your answers with the original plans and the answer in requirement 1. What is the major lesson of this problem?

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Units sold EUR 20 and Revenues EUR 30 per unit Variable costs @EUR 14 and EUR 18 per unit Contribution margins STANDARD CARRIER DELUXE CARRIER TOTAL 150,000 50,000 200,000 EUR 3,000,000 EUR 1,500,000 EUR 4,500,000 2,100,000 900,000 @EUR 6 and EUR 12 per unit EUR 900,000 EUR 600,000 Fixed costs Operating profit 3,000,000 1,500,000 1,200,000 EUR 300,000