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: (Click the icon to view the price and cost information.) The fixed costs of Table 1-2-3 5.0 are $10,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements. 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, 3 units are sold to new customers, and 2 units are sold to customer who bought upgrades. Determine the formula used to calculate the breakeven point when there is more than one product sold, then enter the amounts in the formula to calculate the breakeven point in bundles. Fixed costs 10,500,000 Contribution margin per bundle = 625 Breakeven point in bundles 16,800 units for new customers and 33,600 units for upgrade customers. The breakeven point is 50,400 Requirement 2. If the sales mix is attained, what is the operating income when 200,000 units are sold? Units sold Total revenue Total variable costs Contribution margin Fixed costs Operating income New customers Upgrade customers 120000 80000 Total 200000 Data table New Customers Upgrade Customers Selling price $ 220 $ 130 Variable costs Manufacturing Marketing Contribution margin $ 20 $ 20 55 75 15 35 $ 145 $ 95 Requirements Print Done 1. What is the Table 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? 2. If the sales mix is attained, what is the operating income when 200,000 total units are sold? 3. Show how the breakeven point in units changes with the following customer mixes: a. New 50% and upgrade 50% b. New 90% and upgrade 10% c. Comment on the results. -