The Goldman Company retails two products, a standard and a deluxe version of a luggage carrier. The budgeted statement of comprehensive income is as follows:

Required

1. Compute the breakeven point in units, assuming that the planned revenue mix is maintained.
2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold.
3. Suppose 180,000 units are sold, but only 60,000 of them are deluxe. Compute the operating income. Compute the breakeven point if these relationships persist in the next period. Compare your answers with the original plans and the answer in requirement 1. What is the major lesson of this problem ?

Requirement 1. Compute the breakeven point in units, assuming that the planned sales mix is attained.

Begin by determining the sales mix. For every 2 deluxe unit(s) sold ____ standard units are sold.

The Gran Company words and answer come TI www Red 1. Outre porte de mare 1. Computer party under now 1. 100.000.000 m Condheitsthemen vernemen Where the mother? w Requirement Comment Begin bywing the forwyde sold - Budgeted statement of comprehensive income Standard Carrier 108,000 Deluxe Carrier 72,000 Total 180,000 Units sold Revenues at $30 and $45 per unit $ 3,240,000 $ 2,376,000 864,000 $ 3,240,000 $ 1,944,000 6,480,000 4,320,000 Variable costs at $22 and $27 per unit $ 1,296,000 Contribution margin at $8 and $18 per unit 2,160,000 1,800,000 360,000 Fixed costs Operating income Print Done