Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how do you find fixed costs? Requirement 3. Suppose 220,000 units are sold but only 22,000 of them are deluse. Compute the operating incomempute the

image text in transcribed
how do you find fixed costs?
image text in transcribed
image text in transcribed
image text in transcribed
Requirement 3. Suppose 220,000 units are sold but only 22,000 of them are deluse. Compute the operating incomempute the breakeven point in units. Compare your answer with the answer to requirement 1. What is the major lesson of this problem? Compute the operating income il 220.000 units are sold but only 22,000 of them are deluxe Standard Carrier Deluxe Carrier Total 198000 22000 220000 Units sold Revenues a $20 and 537 per unit 3960000 814000 4774000 2070000 Variable costs at $15 and 517 per unit 374000 3344000 0000 440000 1430000 Contribution margin Fixed costs Operating income Requirement 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? Compute the operwing income it 220,000 units are sold but only 22,000 of them are deluxe Standard Carrier Deluxe Carrier Total 198000 22000 220000 Units sold Reverses at $20 and $37 per unit 3960000 814000 4774000 Variable costs at $15 and 517 per un 2970000 374000 34000 900000 440000 Contribution margin 1430000 Fixed costs Operating income Sinhank Check The Wharton Company retails to products: a standard and a deluxe version of a luggage carrier. The budgered income statement for next period is as follows: Click the icon to view the budgeted Income statement.) Read the recent 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 1 deluxe units) sold, 4 standard units are sold Determine the formula used 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 Contribution margin per bundle - Breakeven point in bundes $ 1,300,000 40 The breakeven points 130,000 standard units and 32.000 de units Requirement 2. Compute the breakeven point in units () #ory Mandard carriers are sold and (b) only due carries we sold (a) If only standard carries we hebreakeven point is 200.000 units b) if only deluxe carriers are sold, the breakeven point is 65,000 units Requirement Support 220.000 units we old but only 22,000 of them are deluxe. Compute the opening income. Computer breakeven point in unts Compare your answer with more to requirement 1. What is the major lesson of this problem? Compute the operating income if 220.000 units are sold but only 22,000 of them are deluxe Read the teaviments The breakeven point is 130,000 standard units and 32.500 dolux units Requirement 2. Compute the breakeven point in units (a) only standard carriers are sold and (b) if only deluxe carriers are sold. (a) only standard carriers are sold, the breakeven pointis 200.000 units (b) If only deluxe carriers are sold, the breakeven point is 65.000 units Requirement 3. Suppote 220,000 units are sold but only 22,000 of them aro deluo. Compute the operating income. Compute the breakeven point in units. Compare your answer wth the answer to requirement 1. What is the major lesson of this problem? Compute the operating income 1 220.000 units are sold but only 22,000 of them are deluxe Standard Carrier Deluxe Carrier Total 108000 Units sold 22000 220000 3900000 Rover $20 and 537 per unit 814000 4774000 2070000 374000 Variable costs of $15 and 517 per unit 900000 Contribution margin 1430000 Fixed costs Operating income 440000 Enter any number in the edit fields and then click Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions