Question
Requirements - Data table 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. 2. Compute the breakeven
Requirements - Data table 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. 3. Suppose 220,000 units are sold but only 22,000 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? Units sold Revenues at $20 and $37 per unit Standard Carrier Deluxe Carrier Total 176,000 44,000 220,000 $ 3,520,000 $ 1,628,000 $ 5,148,000 2,640,000 748,000 Variable costs at $15 and $17 per unit Contribution margins at $5 and $20 per unit Fixed costs 3,388,000 $ 880,000 $ 880,000 1,760,000 1,300,000 $ 460,000 Operating income Print Done
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