ompute the breakeven point in units, assuming that the company achieves its planned sales mix. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. S 875,000 2. Requin 3. Suppose 250,000 units are sold but only 50,000 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? 3-52 Gross margin and contribution margin. The Museum of America is preparing for its annual appre- ciation dinner for contributing members. Last year, 525 members attended the dinner. Tickets for the dinner were $24 per attendee. The profit report for last year's dinner follows. Ticket sales Cost of dinner Gross margin Invitations and paperwork Profit (loss) $ 12,600 (2,700) 2,500 S (5,200) This year the dinner committee does not want to lose money on the dinner. To help achieve its goal, the com- mittee analyzed last year's costs. Of the $15,300 cost of the dinner, $9,000 were fixed costs and $6,300 were variable costs. Of the $2,500 cost of invitations and paperwork, $1,975 were fixed and $525 were variable. 7 1. Prepare last year's profit report using the contribution margin format. 2. The committee is considering expanding this year's dinner invitation list to include volunteer members in addition to contributing members). If the committee expands the dinner invitation list, it expects at- tendance to double. Calculate the effect this will have on the profitability of the dinner assuming fixed costs will be the same as last year. 3-53 Ethics, CVP analysis. Megaphone Corporation produces a molded plastic casing, M&M101, for many cell phones currently on the market. Summary data from its 2017 income statement are as follows: Revenues Variable costs $5,000,000 3,250,000 1,890,000