Table 1-2-3 is a top-selling electronic spreadsheet product.

Table

is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased

Table

1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs:

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The fixed costs of

Table

1-2-3 5.0 are

$16,500,000.

The planned sales mix in units is

60%

new customers and

40%

upgrade customers.

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Requirement 1. What is the Table 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle, units are sold to new customers, and units are sold to customer who bought upgrades. Data Table - X Requirements 1. New Customers Upgrade Customers $ 195 $ 115 2. Selling price Variable costs Manufacturing Marketing $ 15 3. What is the Table 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? If the sales mix is attained, what is the operating income when 200,000 total units are sold? Show how the breakeven point in units changes with the following customer mixes a. New 40% and upgrade 60% b. New 80% and upgrade 20% c. Comment on the results 15 50 $ 65 20 35 | Contribution margin $ 130 $ BO Print Done Print Done