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Multiple-Froduct Analyss, Changes in Sales Mix, Sales to Earn Target Operating Income Basu Company produces two types of sleds for playing in the snow: basic
Multiple-Froduct Analyss, Changes in Sales Mix, Sales to Earn Target Operating Income Basu Company produces two types of sleds for playing in the snow: basic sled and aerosled. The projected income for the coming year, segmented by product line, follows: Basic SledAerosled Total 53,000,000 2,400,000 $5,400,000 1,000,000 1,000,000 2,000,000 2,000,000 $1,400,000 3,400,000 00 550,000 1,428,000 1,222,000 $750,000 $1,972,000 198,900 $1,773,100 Total variable cost Direct fixed cost Product margin Common fixed cost Operating in The selling prices are s30 for the basic sled and $60 for the aerosled. (Round bresk-even packages and break-even units to the nearest whole unit.) Required 1. Compute the number of units of esch product that must be sold for Basu to break even. Basic 11.11 x units 23,800 X units Assume that the marketing manager changes the sales mix of the two products so that the ratio is five basic sleds to three aerosleds. Compute the number of units of each product that must be sold for Basu to break even. Round your answers to the nearest whole number. 34,8291 X units 20.098 x units of basic J. Conceptual Connection: Refer to the orginal dats. Suppose that su can increase the sales of serosleds with increased advertising. The extrs advertising would cost an additional $195,000, and some of the potential purchssers aerosleds would increase by 12,000 units, and sales of basic sleds would decrease by 5,000 units. Would Basu be better off with this strategy? f so, give the amount of increase in income. Yes v sleds would switch to serosleds. In total sales of basic eds would 125,000 7 Cheock My Work Partaly correct
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