Barani Inc. produces two types of trampolines. One is smaller and is primarily used in gyms for exercise classes. The other is a larger model designed for recreational use. The smaller trampoline sells for $300 and has variable costs of $180. The larger trampoline sells for $400 and has variable costs of $250. Barani sells four smaller models for every one larger model sold. Fixed costs oqual $1.260,000. Read the requirements. Requirement 1. What is the breakeven point in unit sales and dollars for each type of trampoline at the current sales mix? Begin by determining the formula used to calculate the breakeven point when there is more than one product sold. Then, enter the amounts in the formula to calculate the breakeven point Fixed costs Contribution margin per bundeBreakeven point in bundles 126 1260000 10000 The breakeven point in unit sales is 3380 small trampolines and 630 large trampolines. The breakeven point in dollars is 1008000othesall trampolines and $252000for the large trampolines. Requirement 2. Barani is considering buying new production equipment. The new equipment will increase fixed cost by $270,000 per year and will decrease the variable cost of the small and large trampolines by $20 and $55, res each type of trampoline doos Barani need to sell to break even? Let's begin by calculating the new costs if Barani purchases the new production equipment. Fixed cost Variable costs: Small trampoline Large trampoline The breakeven point in bundles under this scenario is bundles. lf Baran purchases the new production equipment, it will need to sel small trampolines and large trampolines. Choose from any list or enter any number in the input fields and then continue to the next question. Requirements ements 1. What is the breakeven point in unit sales and dollars for each type of trampoline at the current sales mix? 2. Barani is considering buying new production equipment. The new equipment will increase fixed cost by $270,000 per year and will decrease the variable cost of the small and large trampolines by $20 and $55, respectively. Assuming the same sales mix, how many of each type of trampoline does Barani need to sell to break even? 3. Assuming the same sales mix, at what total sales level would Barani be indifferent between using the old equipment and buying the new production equipment? If total sales are expected to be 13,000 units, should Barani buy the new production equipment? Print Done