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6. ABC Co. produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white.
6. ABC Co. produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer- scanner-copier. For the coming year, the manager expects to sell 90,000 regular models and 22,500 deluxe models. A segmented income statement for the two products is as follows. Sales Variable expenses Contribution margin Fixed expenses Common fixed costs Operating income Regular Model Deluxe Model Total $ 13,500,000 $ 12,150,000 $ 25,650,000 9,000,000 7,290,000 $ 16,290,000 $ 4,500,000 $ 4,860,000 $ 9,360,000 1,200,000 1,060,000 2,260,000 1,280,160 $ 3,300,000 $ 3,800,000 $ 5,819,840 Required: (1) Compute the number of regular models and deluxe models that must be sold to break even. (2) Compute the break-even in sales
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