Company sells products both domestically and internationally. Fixed costs totaled $4,100,000 last year. In

an effort to increase its total sales?volume, Alpha plans to spend an additional $1,310,000 in advertising next year. Expected average prices and variable costs appear below.

Because of the increased?advertising, Alpha expects to sell 315,000 units domestically and 210,000 units internationally next year.

Requirements

?(a)

Using the expected sales?mix, determine the number of units that Alpha must sell in each market in order to earn income of $480,000 next year.

Alpha Company sells products both domestically and internationally. Fixed costs Because of the increased advertising, Alpha expects to sell 315,000 units totaled $4,100,000 last year. In domestically and 210,000 units internationally next year. an effort to increase its total sales volume, Alpha plans to spend an additional $1,310,000 in advertising next year. Expected average prices and variable costs Requirements appear below. (a) Using the expected sales mix, determine the number of units that Alpha must sell in each market in order to earn income of $480,000 next year. Domestic International Price per unit $ 60 $ 40 Variable costs per unit 25 15 Requirement (3) Using the expected sales mix, determine the number of units that Alpha must sell in each market in order to earn income of $480,000 next year. Use the bundle approach. Begin by calculating the multiple to be used with this product mix. (Hereafter referred to as the Product Mix Multiple (PMM). Round your answer to one decimal place. Abbreviation used: CM = Contribution margin; FC = Fixed costs; PMM = Product mix multiple; SP = Sales price; VC = Variable costs; Dom = Domestic, Int. = International) Product mix Sales units (Dom) / Sales units (Int) = multiple (PMM) 315,000 I $ 210,000 = 1.5 Next, identify the formula and calculate the required sales units that Alpha must sell in the international market using the bundle approach. (Round interim calculations to one decimal place. Abbreviation used: CMIunit = Contribution margin per unit; FC = Fixed costs; PMM = Product mix multiple; Sales price; VC = Variable costs; Dom = Domestic, Int. = International) Required units ( FC+TargetProt )/[ CMIunit(lnt)+(PMMxCM/unit(Dom)) v ]= (International) ( )fl Il 1= Il