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accounting book example Number changed standard carrier 375000 now try this please answer question 2 2 Sales mix, two products. The Stackpole Company retails two
accounting
book example Number changed standard carrier 375000 now try this
please answer question 2
2 Sales mix, two products. The Stackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: Units sold Revenues at $28 and $50 Standard carrier 187500 5250000 Delux carrier 62500 3125000 total 250000 8375000 per unit 375000 1875000 5250000 1875000 1250000 3125000 Variable costs at $18 and $30 per unit Contribution margins at $10 and $20 per unit Fixed costs 2300000 Operating income 2300000 825000 Required 1. Compute the breakeven point in units, assuming that the planned sales mix is attained. ii. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. iii. Suppose 250,000 units are sold but only 50,000 of them are deluxe. Compute the operating income. Compute the breakeven point in units. Compare your answer with the answer to requirement 1. What is the major lesson of thisStep by Step Solution
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