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Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another
Alo Company 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 printerscannercopier. For the coming year, Alo expects to sell regular models and deluxe models. A
segmented income statement for the two products is as follows:
Required:
Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit.
Regular models
units
Deluxe models
Eunits
Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break
even. Round the contribution margin ratio to four decimal places. Use the rounded value in the subsequent computation. Express as a
decimalbased amount rather than a whole percentage. Round the amount of revenue to the nearest dollar.
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