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The Schmidt Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is
The Schmidt 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 the breakeven point in units, assuming that the company achieves its planned sales mix. Begin by determining the sales mix. For every 1 deluxe unit(s) sold, standard units are sold. Requirements 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 250,000 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 problem? Print Done Data table Standard Carrier Deluxe Carrier Total 200,000 50,000 250,000 Units sold Revenues at $25 and $45 per unit Variable costs at $15 and $25 per unit 5,000,000 $ 3,000,000 2,250,000 $ 7,250,000 1,250,000 4,250,000 $ Contribution margins at $10 and $20 per Whit 2,000,000 $ 1,000,000 3,000,000 2,475,000 Fixed costs $ 525,000 Operating income
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