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(0.7) Data 1-2-3 is a top-selling electronic spreadsheet product. Data is about to release version 3.0. It divides its customers into two groups: new customers
(0.7) Data 1-2-3 is a top-selling electronic spreadsheet product. Data is about to release version 3.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Data 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to cach customer group, sizable differences exist in selling prices and variable marketing costs: New Customers Upgrade Customers Selling price Variable costs Manufacturing Marketing 100 50 Contribution margin $ 50 $275 $100 $35 65 $35 15 $175 The fixed costs of Data 1-2-3, 5.0 are $15,000,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Questions: 1. Calculate the Data 1-2-3, 5.0 breakeven point in units (number of bundles, new customers, upgrade customers) assuming that the planned 60% 40% sales mix is attained? 2. If the sales mix is attained, what is the operating income when 220,000 total units are sold
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