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P3-51 (similar to) The Alves Company retails two products: a standard and a del uxe version of a luggage carrier. The budgeted income statement for
P3-51 (similar to) The Alves Company retails two products: a standard and a del uxe version of a luggage carrier. The budgeted income statement for next period is as follows E (Click the icon to view the budgeted income statement.) Read the requirements. Question Help 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, 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 3 standard units are sold. Fixed costs Contribution margin per bundleBreakeven point in bundles 1,400,000 56 25,000 The breakeven point is 75,000 standard units and 50,000 deluxe units. Requirement 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold (a) If only standard carriers are sold, the breakeven point is (b) If only deluxe carriers are sold, the breakeven point is Requirement 3. Suppose 180,000 units are sold but only 60,000 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 175,000 units. 87,500 units. problem? Compute the operating income if 180,000 units are sold but only 60,000 of them are deluxe. Standard Carrier Deluxe Carrier Total 120,000 Units sokd Revenues at $30 and $43 per unit 3,600,000 2,580,000 S 6,180,000 Requirement 3. Suppose 180,000 units are sold but only 60,000 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 operating income if 180,000 units are sold but only 60,000 of them are deluxe Standard Carrier Deluxe Carrier Total 180,000 3,600,000 2,580,000 $ 6,180,000 4,260,000 0,000 920,000 1,400,000 $520,000 120,000 60,000 Units sold Revenues at $30 and $43 per unit Variable costs at $22 and $27 per unit Contribution margin Fixed costs Operating income Before calculating the breakeven points, determine the new sales mix. For every 1 deluxe carrier sold Compute the breakeven point in units, assuming the new sales mix. Round your answers up to the next whole number.) The breakeven point is 2,640,000 1,620,000 960,000 $ 2 standard carriers are sold. standard units and deluxe units. 1Data Table Standard Carrier Deluxe Carrier Total 108,000 180,000 3,096,000 $ 6,336,000 ,320,000 2,016,000 1,400,000 $616,000 72,000 Units sold Revenues at $30 and $43 per unit Variable costs at $22 and $27 per unit Contribution margins at $8 and $16 per unit Fixed costs Operating income 3,240,000 $ 2,376,000 1,944,000 864,000 $ 1,152,000 Print Done
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