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 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		$12,800,000		$10,720,000		$23,520,000
Less: Variable costs		7,680,000		6,432,000		14,112,000
Contribution margin		$5,120,000		$4,288,000		$9,408,000
Less: Direct fixed costs		1,200,000		960,000		2,160,000
Segment margin		$3,920,000		$3,328,000		$7,248,000
Less: Common fixed costs						1,838,400
Operating income						$5,409,600

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