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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.) Read the requirements, Requirement 1. Compute Data Table X Begin by determining the s Standard Carrier Deluxe Carrier 120,000 80,000 Total 200,000 Units sold Revenues at $25 and $40 per unit $ Variable costs at $15 and $25 per unit $ Contribution margins at $10 and $15 per unit Fixed costs 3,000,000 $ 1,800,000 1,200,000 $ 3,200,000 $ 6,200,000 2,000,000 3,800,000 1,200,000 2,400,000 1,275,000 $ 1,125,000 Operating income Drini Dana 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 200,000 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
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