Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hi! i just need help finding the breakeven point in standard units and deluxe units! The Alves Company retails two products: a standard and a

image text in transcribed
image text in transcribed
image text in transcribed
hi! i just need help finding the breakeven point in standard units and deluxe units!
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 foll (Click the icon to view the budgeted income statement.) Read the requirements Tuy I can Bu, even pows Requirement 3. Suppose 240.000 units are sold but only 40,000 of them are deluxe. Compute the operating income. Compute the breakeven point in un the answer to requirement 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 Units sold 200,000 40,000 240,000 Revenues at $30 and $38 per unit $ 6,000,000 $ 1.520,000 $ 7,520,000 Variable costs at $24 and $28 per unit 4,800,000 1,120.000 5,920,000 $ Contribution margin 1.200,000 $ 400,000 1,600,000 Fixed costs 1.050,000 Operating Income 550,000 Before calculating the breakeven points, determine the new sales mix. For every 1 deluxe carrier sold, 5 standard carriers are sold. Standard carriers are sold. Compute the breakeven point in units, assuming the new sales mix. (Round your answers up to the ne The breakeven point is 187500 standard units and 37500 deluxe units. Enter any number in the edit fields and then click Check Answer sts: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as ed income statement.) Data Table Standard Carrier Deluxe Carrier 180,000 60,000 Total 240,000 Units sold Revenues at $30 and $38 per unit 5,400,000 $ 4,320,000 1,080,000 $ 2,280,000 $ 1,680,000 7,680,000 6,000,000 Variable costs at $24 and $28 per unit Contribution margins at $6 and $10 per unit 600,000 1,680,000 1,050,000 Fixed costs $ Operating income 630,000 nit Print Done 75bu staruaru unts and Oro ueruxe US

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Debunked An Auditor Reviews The 2020 Election And The Lessons Learned

Authors: Joseph Fried

1st Edition

1645720756, 978-1645720751

More Books

Students also viewed these Accounting questions

Question

Influences on Nonverbal Communication?

Answered: 1 week ago