CVP Analysis of Multiple Products

Steinberg 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, Steinberg 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		$13,600,000		$29,600,000
Less: Variable costs		9,600,000		8,160,000		17,760,000
Contribution margin		$6,400,000		$5,440,000		$11,840,000
Less: Direct fixed costs		1,200,000		960,000		2,160,000
Segment margin		$5,200,000		$4,480,000		$9,680,000
Less: Common fixed costs						1,865,600
Operating income						$7,814,400

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	units
Deluxe models	units

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