The Ready Company retails two products a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: E: (Click the icon to view the budgeted income statement) Read the requirements Standard Carrier Deluxe Carrier Total 198,000 22.000 220,000 Units sold Revenues at $20 and $37 per unit $ 3,960,000 $ 814,000 $ 4,774,000 2,970,000 374,000 3,344,000 Variable costs at $15 and $17 per unit $ 990,000 $ 440,000 1,430,000 Contribution margin 1,300 000 Fixed costs 130,000 Operating income Before calculating the breakeven points determine the new sales mix. For every 1 deluxe carrier sold 9 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 1300000 standard units and 14444 deluxe units Enter any number in the edit fields and then click Check Answer. Formula for BEP when there is more than one product = Fixed Costs / Weighred Average Contribution Margin. Weighted Average Contribution Margin is calculated taking the sales min percentage into consideration. Steps involed in the calculation and approtionment to the products are as follows: Standard Del 276000 30.DON 1000 20.00 37 20 25 17 Sales (Units Sales Mix Percentage Selling Price Less: VariableCosts Contribution Margin Sales mix Percentage Weighted Average CMCM perunt Sales Mix Sum of Weighted Average CM 20.00 30.00% 400 3.00 Breakfven Point in units of Sales Mix Fred Cost/Weighted Avg. CM per unit 1300000/3 1 Units Standard Sales Mix Percentage BON 263500 110000 x Total Break Even Units Units to be sold to break even Requirement 2: If only Standard carriers was sold, then the BEP in units is Standard Sales (Units) 176000 Selling Price 20 Less: VariableCosts Contribution Margin 1300000 BEP in units =Fixed Costs / CM per unit 260000 units If only Deluxe carriers was sold, then the BEP in units is 15 5 Fixed Costs Deluxe Sales (Units) 44000 Selling Price 37 Less: VariableCosts 17 Contribution Margin 20 Fixed Costs 1300000 BEP in units =Fixed Costs / CM per unit 65000 units Hope this helps! In case of any clarifications, kindly use the comment box below