Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CVP Analysis of Multiple Products Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and

image text in transcribedimage text in transcribed

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 80,000 regular models and 16,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model Total Sales $12,000,000 $10,720,000 $22,720,000 Less: Variable costs 7,200,000 6,432,000 13,632,000 Contribution margin $4,800,000 $4,288,000 $9,088,000 Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin $3,600,000 $3,328,000 $6,928,000 Less: Common fixed costs 1,475,200 Operating income $5,452,800 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 models units units 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 Check My Work All work saved. Emaljstructor Previous

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory

Authors: William R. Scott

7th edition

132984660, 978-0132984669

More Books

Students also viewed these Accounting questions

Question

How has technology changed the home-buying process?

Answered: 1 week ago