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:

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	Standard Carrier	Deluxe Carrier	Total
Units sold	108,000	72,000	180,000
Revenues at $30 and $43 per unit	$3,240,000	$3,096,000	$6,336,000
Variable costs at $22 and $27 per unit	2,376,000	1,944,000	4,320,000
Contribution margins at $8 and $16 per unit	$864,000	$1,152,000	2,016,000
Fixed costs			1,400,000
Operating income			$616,000

Read the 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

180 comma 000180,000

units are sold but only

60 comma 00060,000

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?

.

Requirement 1. Compute the breakeven point in? units, assuming that the company achieves its planned sales mix.

Begin by determining the sales mix. For every 2 deluxe unit(s) sold,

standard units are sold.