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- The Alves Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period
- The Alves Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: (Click the icon to view the budgeted income statement.) Read the requirements Data table Requirements 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 Fixed costs Print Done Standard Carrier Deluxe Carrier 132,000 Total 88,000 220,000 Revenues at $25 and 561 per unit Variable costs at $15 and $31 per unit Contribution margins at $10 and $30 per unit $ 3,300,000 $ 1,980,000 5,368,000 $ 8,668,000 2.728,000 4,708,000 1,320,000 $ 2.640,000 3.960,000 2,205,000 $ 1,755,000 Operating income Print Done
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