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Data table Standard Carrier Deluxe Carrier Total 180,000 60,000 240,000 Units sold Revenues at $30 and $38 per unit $ 5,400,000 $ 2,280,000 $ 7,680,000
Data table Standard Carrier Deluxe Carrier Total 180,000 60,000 240,000 Units sold Revenues at $30 and $38 per unit $ 5,400,000 $ 2,280,000 $ 7,680,000 4,320,000 1,680,000 6,000,000 Variable costs at $24 and $28 per unit 1,080,000 $ 600,000 Contribution margins at $6 and $10 per unit 1,680,000 1,050,000 Fixed costs $ Operating income 630,000 The Ready Company retails two products a standard and a deluxe version of a luggage carlier. The budgeted income statement for next period is as follows Click the icon to view the budgeted income statement) Read the rements Requirement 1. Compute the breakeven point in units, assuming that the company achieves is planned sales mix Begin by determining the sales mix. For every 1 deluxe unit(s) sold. standard units are sold Determine the formula uned to calculate the breakeven point when there is more than one product sold Then, enter the amounts in the formula to calculate the breakeven point Fixed costs 1,050,000 The breakeven point is Contribution margin per unit standard units and 0.75 10 deluxe units Breakeven point in bundles 1,400,000 Requirement 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold (a) If only standard carriers are sold, the breakeven point is (b) If only dekore carriers are sold, the breakeven point is 175.000 units 105,000 units Requirement 3. Suppose 240,000 units are sold but only 40,000 of them are deluxe Compule the operating income Compute the breakeven point in units Compare your answer with the answer to regiment 1 What is the major lesson of this problem? Compute the operating income if 240.000 units are sold but only 40,000 of them are deluxe Standard Carrier Deluxe Carrier Total 200,000 40.000 240.000 Units sold Revenues at $30 and $30 per unit 6.000.000 1,520,000 7.520,000 Variable costs at $24 and $28 per unit 4.800,000 1,112,000 5.920 000 1,200,000 400.000 Contribution margin 1,600,000 Fixed costs 1.050.000 550,000 Operating income Before calculating the breakeven points, determine the new sales mix For every 1 deluxe carrier sold, standard carriers are sold Compute the breakeven point in units, assuming the new sales mix (Round your answers up to the next whole number) The breakeven point is standard units and deluxe units Compare your answer with the answer to requirement 1. What is the major lesson of this problem? In this example, the budgeted and actual total sales in number of units were identical but the and the breakeven point The major lesson of this problem is that changes in the sales mix change breakeven points and operating incomes contribution margin declined Operating income proportion of the product having the
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