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Data table Units sold Revenues at $25 and $61 per unit Standard Carrier Deluxe Carrier 132,000 Total 88,000 220,000 3,300,000 $ 5,368,000 $8,668,000 Xor
Data table Units sold Revenues at $25 and $61 per unit Standard Carrier Deluxe Carrier 132,000 Total 88,000 220,000 3,300,000 $ 5,368,000 $8,668,000 Xor hix. 1,980,000 2,728,000 4,708,000 Variable costs at $15 and $31 per unit $ 1,320,000 $ 2,640,000 Contribution margins at $10 and $30 per unit 3,960,000 2,205,000 Fixed costs $ 1,755,000 Operating income Requirements 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. 3. Suppose 220,000 units are sold but only 22,000 of them are deluxe. Compute the operating income. Compute the breakeven point in units. Compare your answer with the answer to requirement 1. What is the major lesson of this problem? The Alves Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: (Click the icon to view the budgeted income statement.) Read the fequirements Requirement 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. Begin by determining the sales mix. For every 2 deluxe unit(s) sold, standard units are sold.
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