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The Coughlin Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as
The Coughlin 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. Requirement 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. i Requirements Begin by determining the sales mix. For every 1 deluxe unit(s) sold, standard units are sold. 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 250,000 units are sold but only 25,000 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? Print Done i Data Table Standard Carrier Deluxe Carrier Total 250,000 200,000 50,000 Units sold Revenues at $25 and $45 per unit 5,000,000 $ 3,000,000 2,250,000 $ 1,250,000 7,250,000 4,250,000 Variable costs at $15 and $25 per unit 2,000,000 $ 1,000,000 Contribution margins at $10 and $20 per unit Fixed costs 3,000,000 2,475,000 525,000 $ Operating income Print Done
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