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The Goldman Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as
The Goldman 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.) ounts in the formula to calculate the br re sold. 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. = Breakeven point in bundles = units. = Breakeven point in bundles = The breakeven point is standard units and 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 (b) If only deluxe carriers are sold, the breakeven point is units. units. the answer to requirement 1 . What is the major lesson of this problem? Compute the operating income if 200,000 units are sold but only 25,000 of them are deluxe. 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 . In this example, the budgeted and actual total sales in number of units were identical, but the proportion of the product having the contribution margin declined. Operating income and the breakeven point
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