5. Sales mix, two products. The Stackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows:

	Standard carrier	Delux carrier	total
Units sold	187500	62500	250000
Revenues at $28 and $50 per unit	5250000	3125000	8375000
Variable costs at $18 and $30 per unit	375000	1875000	5250000
Contribution margins at $10 and $20 per unit	1875000	1250000	3125000
Fixed costs 2300000			2300000
Operating income			825000

Required

I . Compute the breakeven point in units, assuming that the planned sales mix is attained.

ii. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold.

iii. Suppose 250,000 units are sold but only 50,000 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?