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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 vlow the budgeted income statement.) Read the requirements. 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 1 deluxe units) sold, 3 standard units are sold. 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 Fixed costs Contribution margin per bundle = Breakeven point in bundles 18,000 2,250 12.50 The breakeven point is 3 standard units and 4 deluxe units. Requirement 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. (a) If only standard carriers are sold, the breakeven point is 135.000 units. Choose from any list or enter any number in the input fields and then continue the next question. ? 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 sta Data Table Read the requirements, Requirement 1. Compute the breakeven point in un Total Begin by determining the sales mix. For every 1 del Standard Carrier Deluxe Carrier 187,500 62,500 250,000 Determine the formula used to calculate the breakey Units sold Revenues at $28 and $50 per unit $ even point. 5.250,000 $ 3,375,000 3,125,000 $ 8,375,000 1,875,000 5.250,000 Fixed costs + Contriby Variable costs at $18 and $30 per unit 2.250 $ 1,875,000 $ 1,250,000 Contribution margins at $10 and $20 per unit 3,125,000 2,250,000 The breakeven point is 3 standard units Fixed costs $ 875,000 Requirement 2. Compute the breakeven point in un Operating income (a) If only standard carriers are sold, the breakeven Print Done Choose from any list or enter any number in the VIVAGO. The Coughin Company retalls 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 view the budgeted income statement.) Read the requirements Requirement 2. Compute the breakeven point in units ja) if only standard carriers are sold and (b) if only deluxe carriers are sold. 135.000 units (a) If only standard carriers are sold the breakeven point is (b) if only deluxe carriers are sold, the breakeven point is 45.000 units Requirement 3. Suppose 250,000 units are sold but only 50,000 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? Compute the operating income if 250.000 units are sold but only 50.000 of them are deluxe. Standard Carrier Deluxe Carrier Total Units sold Revenues at $28 and $50 per unit Variable costs at S18 and 530 Der unit Choose from any list or enter any number in the input fields and then continue to the next question. Compute the operating income if 250,000 units are sold but only 50,000 of them are deluxe. Standard Carrier Deluxe Carrier Total Units sold Revenues at $28 and $50 per unit Variable costs at $18 and $30 per unit Contribution margin Fixed costs Rectangular Snip Operating income Before calculating the breakeven points, determine the new sales mix. The Coughlin Company retalls 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. Operating income Before calculating the breakeven points, determine the new sales mix. For every 1 deluxe carrier sold standard carriers are sold. Compute the breakeven point in units, assuming the new sales mix. (Round your answers up to the next whole number.) The breakeven point is standard units and deluxe units. Compare your answer with the answer to requirement 1. What is the major lesson of this problem? The major lesson of this problem is that changes in the sales mix change the proportion of the product having the contribution margin declined. Operating income In this example, the budgeted and actual total sales in number of units were identical, but V and the breakeven point Choose from any lisi or enter any number in the input fields and then continue to the next
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