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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
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: Total Units sold Revenues at $28 and $50 per unit Variable costs at $18 and $30 per unit Contribution margins at $10 and $20 per unit Fixed costs Operating income Standard Carrier 187,500 $5,250,000 3,375,000 $1,875,000 Deluxe Carrier 62,500 $3,125,000 1,875,000 $1,250,000 250,000 $8,375,000 5,250,000 3,125,000 2,250,000 $ 875,000 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. How many standard carriers would be sold? 2. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. How many deluxe carriers would be sold? 3. Compute the breakeven point in units if only standard carriers are sold. 4. Compute the breakeven point in units if only deluxe carriers are sold. 5. Suppose 250,000 units are sold but only 50,000 of them are deluxe. Compute the operating income
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