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Record 1-2-3 is a top-selling electronic spreadsheet product. Record is about to release version 5.0. It divides its customers into two groups: new customers
Record 1-2-3 is a top-selling electronic spreadsheet product. Record is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Record 1-2-3.4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: (Click the icon to view the price and cost information.) The fixed costs of Record 1-2-3 5.0 are $16,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers Read the requirements Requirement 1. What is the Record 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? units are sold to new customers, and Begin by determining the sales mix. For every bundle, units are sold to customer who bought upgrades Requirements What is the Record 1-2-35.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? If the sales mix is attained, what is the operating income when 190,000 total units are sold? 1. 2 3 Show how the breakeven point in units changes with the following customer mixes a. New 40% and upgrade 60% b. New 80% and upgrade 20% e. Comment on the results Print Done Data table New Customers Selling price Variable costs Manufacturing $ 56 15 Marketing Contribution margin $ 195 Upgrade Customers $ 50 65 522 15 20 $ 130 Print Done - $ 115 35 $ 80 X
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