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 ?

Budgeted statement of comprehensive income Total Standard Carrier 108,000 Deluxe Carrier 72,000 180,000 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 Contribution margin at $8 and $18 per unit $ 1,296,000 2,160,000 1,800,000 Fixed costs Operating income $ 360.000 60 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 benakeven point Fixed costs Contribution margin per bundle Breakeven point in bunden 1,800,000 30,000 The breakoven point is 90,000 standard units and 60,000 deluxe units. Requirement 2. Compute the breakeven point in units (a) if only standard carpiem are sold and (b) if only deluxe carriers are sold. (a) If only standard carriers are sold, the breakeven point is 225000 units (b) If only deluxe carriers are sold, the breakeven point is 100000 units. Requirement 3. Compute the operating income if 180,000 units are sold but only 60,000 of them are deluxe. Standard Carrier Deluxe Carrier Total Units sold 60,000 180,000 Revenues at $30 and $45 per unit I Variable costs at $22 and $27 per unit Contribution margin Fixed costs Operating income