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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 is as
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 in the picture attached :Compute the breakeven point in units, assuming that the company achieves its planned sales mix. This is determined by taking fixed costs and dividing by contribution margin per bumdle.
Compute the breakeven point in unitsa if only standard carriers are sold andb if only deluxe carriers are sold.
Suppose units are sold but only of them are deluxe. Compute the operating income. Compute the breakeven point in units. Compare your answer with the answer to requirement What is the major lesson of this problem?
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