Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Requirements 1. Compute the breakeven point in units, assuming that the planned revenue mix is maintained. 2. Compute the breakeven point in units (a) if

image text in transcribed

Requirements 1. Compute the breakeven point in units, assuming that the planned revenue mix is maintained. 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. 3. Suppose 180,000 units are sold, but only 60,000 of them are deluxe. Compute the operating income. Compute the breakeven point if these relationships persist in the next period. Compare your answers with the original plans and the answer in requirement 1. What is the major lesson of this problem? Requirement 1. Compute the breakeven point in units, assuming that the planned sales mix is attained. Data Table Begin by determining the sales mix. For every 2 deluxe unit(s) sold standard units are sold. Total Standard Carrier 108,000 Deluxe Carrier 72,000 Units sold 180,000 Revenues at $30 and $45 per unit $ 3,240,000 $ 2,376,000 3,240,000 $ 1,944,000 6,480,000 4,320,000 Variable costs at $22 and $27 per unit $ 1,296,000 Contribution margin at $8 and $18 per unit 864,000 $ 2,160,000 1,800,000 Fixed costs $ 360,000 Operating income Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions