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CVP Analysis of Multiple Products Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print
CVP Analysis of Multiple Products 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 printer-scanner-copier for the coming year, Alo expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows: Deluxe Model $12,060,000 Regular Hodel $13,500,000 Total $25,540,000 L: Variable costs 8,100,000 7,236,000 Contribution margin $5,400,000 $4,824,000 15,336,000 $10,224,000 Less: Direct fixed costs Segment margin 1,200,000 $4,200,000 960,000 $3,864,000 2.140,000 $1,064,000 Less: Common fixed co Operating income 1,475,200 $1,500,000 Required: 1. 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 Deluxe model 2. 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 decimal-based amount rather than a whole percentage.) Round the amount of revenue to the nearest dollar. Costitution mannin sakin
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