Problem 7-54 Multiple-Product Analysis, Changes in Sales Mix, Sales to Earn income? (Note: Round operating leverage to two decimal places.) 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: ected, what is the percentage increase in operating OB Target Operating Income E> (Continued) ew Zealand Cruis 11 New Zealand CH 10 Night Queensla 7 Night Quel 3. CONCEPTUAL CONNECTION Refer to the original data. Suppose that Basu can increase additional $195,000, and some of the potential purchasers of basic sleds would switch to acrosleds. In total, sales of aerosleds would increase by 12,000 units, and sales of busi sleds would decrease by 5,000 units. Would Basu be better off with this strategy? Problem 7-55 Cost-Volume-Profit Equation, Basic Concepts, Solving for Chapter 7 Cost-Volume-Profit Analysis Basic Sled Acrosled Total $3,000,000 $2,400,000 $5,400,000 Sales Total variable cost 1,000,000 1,000,000 2,000,000 Contribution margin $2,000,000 $1,400,000 $3,400,000 Direct fixed cost 778,000 650,000 1.428,000 Product margin $1,222,000 S 750,000 $1,972,000 Common fixed cost 198.900 Operating income $1.773.100 The selling prices are $30 for the basic sled and $60 for the aerosled. (Round break ere packages and break-even units to the nearest whole unit.) Required: 1. Compute the number of units of each product that must be sold for Basu to break even 2. Assume that the marketing manager changes the sales mix of the two products so that the ratio is five basic sleds to three aerosleds. Repeat Requirement 1. the sales of aerosleds with increased advertising. The extra advertising would cost aine 5 Unknowns