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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
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, standard units are 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. Fixed costs Contribution margin per bundle Breakeven point in bundles The breakeven point is standard units and deluxe units. Standard Carrier Deluxe Carrier 108,000 72,000 Total 180,000 $ 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 $ 2,376,000 864,000 $ $ 3,096,000 $ 6,336,000 1,944,000 4,320,000 1,152,000 2,016,000 1,400,000 $ 616,000
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