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 100,000 regular models and 20,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model Total Sales $16,000,000 $13,400,000 $29,400,000 Less: Variable costs 9,600,000 8,040,000 17,640,000 Contribution margin $6,400,000 $5,360,000 $11,760,000 Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin $5,200,000 $4,400,000 $9,600,000 Less: Common fixed costs 1,603,200 Operating income $7,996,800 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 32,000 units Deluxe models 6,400 units 2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the Check My Work 5 more Check My Work uses remaining Previous Next nearest 1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nea whole unit. Regular models 32,000 units Deluxe models 6,400 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 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. Contribution margin ratio Revenue Feedback Check My Work 1. Create a table that includes price, variable cost, contribution margin, sales mix, and package contribution margin. Calculate price and variable cost per unit for each product. Calculate the package unit contribution margin. Use the following formula to calculate the total number of breakeven packages for the sales mix: Total fixed cost / Package contribution margin. Determine break-even in units for each product by applying sales mix ratios calculated in the table. 2. Calculate contribution margin ratio (Contritktion margin / Sales). Determine revenue by dividing Total fixed costs by Contribution margin ratio. Check My Work 5 more Check My Work uses remaining Previous Next