Chartz 1-2-3 is a top-selling electronic spreadsheet product. Chartz is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Chartz 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: (Click the icon to view the price and cost information.) The fixed costs of Chartz 1-2-3 5.0 are $16,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements. RE Requirement 1. What is the Chartz 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle, 3 units are sold to new customers, and 2 units are sold to customer who bought upgrades. Determine 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 in bundles. Fixed costs 4 Contribution margin per bundle Breakeven point in bundles 30,000 $ 16,500,000 + S 550 The breakeven point is 90,000 units for new customers and 60,000 units for upgrade customers. Requirement 2. If the sales mix is attained, what is the operating income when 170,000 units are sold? New customers Upgrade customers Total Units sold Total revenue Total variable costs Contribution margin Fixed costs Operating income equirements X Data Table ent ine Het ur New Customers Upgrade Customers er v $ 195 $ 115 th th Selling price Variable costs Manufacturing $ 15 $ 15 FI 50 65 20 35 Marketing $ 130 $ 80 Contribution margin ceva en Print Done 1